:max_bytes(150000):strip_icc()/GettyImages-2113285109-30938d7d0fc64f00a1a2840f48ed491c.jpg "These stocks could benefit from AI-driven energy demand, say Mizuho analysts")
Key findings
- According to forecasts by analysts at Mizuho Research, the power demand of data centers is expected to triple by 2030 due to artificial intelligence (AI).
- According to analysts, energy suppliers such as Constellation Energy, Duke Energy and NextEra Energy as well as infrastructure providers such as Equinix could benefit.
- Demand for renewable energy is also expected to increase. Companies that could benefit include First Solar, GE Vernova and Nextracker.
- Demand for natural gas is expected to increase in the near future, and Chesapeake Energy and EQT are well positioned to benefit from this near-term demand, analysts said.
According to analysts at Mizuho Research, power demand for data centers in the United States is expected to triple by 2030, driven by artificial intelligence (AI) applications.
The increasing demand could become a growth engine for the share prices of electricity utilities as well as companies in the renewable energy sector and other industries, the analysts said.
Shares of energy suppliers and renewable energies should benefit
Shares of electric utilities such as Constellation Energy (CEG), Duke Energy (DUK) and NextEra Energy (NEE) could benefit, the analysts said, as could infrastructure providers such as Equinix (EQIX).
The analysts expect AI will also boost demand for renewable energy such as solar and wind power, given the tech sector’s climate commitments. They added that their models suggest clean energy sources could provide more than half of the U.S.’s electricity by 2030, helped by increased demand from AI data centers.
First Solar (FSLR), GE Vernova (GEV) and Nextracker (NXT) are among the stocks that could benefit from this trend, they said.
Demand for natural gas will increase in the near future
Analysts also said that demand for natural gas is expected to increase in the near future to keep pace with growing power needs of data centers.
They named Chesapeake Energy (CHK) and EQT (EQT) as natural gas stocks with upside potential, as well as infrastructure stocks such as Kinder Morgan (KMI) and Williams Companies (WMB).
