Vistra (VST) and Constellation Energy (CEG) saw massive gains in 2024 as the next phase of the so-called AI Revolution looks to build out the infrastructure for data centers, starting with an energy grid capable of supplying and powering them.
“As we think about this theme, there’s so much investment that’s going to be needed to prepare a system that hasn’t seen power demand growth in over a decade, to be able to actually connect all of these facilities to the grid,” Carly Davenport, Goldman Sachs Vice President in Global Investment Research covering US utilities (XLU), tells Madison Mills on Catalysts.
“So we think the regulated utilities are very well positioned to do that, and we think it’s going to drive an expansion in their capital investment.”
Davenport also speaks about investment opportunities seen in NextEra Energy (NEE) and the potential for nuclear energy to power the AI infrastructure set up by President Biden’s Inflation Reduction Act (IRA).
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This post was written by Luke Carberry Mogan.