Could Utility Stocks Be the Next Big AI Winners?

2026-01-04 09:53:00 ET

AI has the potential to be a powerful technology. However, access to power will be crucial to the technology's adoption in the future. AI data centers require significantly more electricity compared to those handling traditional workloads due to the specialized chips and cooling systems needed to keep these facilities running at full capacity 24 hours a day, every single day.

As a result, utilities could be big winners in the AI age. They should have considerable opportunities to invest capital into expanding their power generation capacity and the related infrastructure to support their expanded operations. That should empower them to grow their earnings and dividends at faster rates in the future, enabling them to produce powerful total returns for their investors.

Here are some of the utilities in the best positions to cash in on the AI boom.

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