Krux
February 20, 2026
AI Boom Turns Boring Utilities Into Hot Growth Stocks
Published: February 20, 2026 at 12:56 AM
Updated: February 20, 2026 at 12:56 AM
100-word summary
AI's insatiable appetite for electricity is flipping the script on power companies. Once seen as sleepy, stable investments, utilities have surged 43% since late 2023, with the sector up 20% this year alone. The driver? Data centers powering AI are guzzling energy at breakneck speed. US data-center electricity demand could jump 20-40% in 2025 and balloon from 35 gigawatts today to 78 GW by 2035, claiming nearly 9% of America's total power. Expect a massive buildout of solar, batteries, and natural gas to keep the lights on, reshaping energy markets for a decade.
What happened
AI's insatiable appetite for electricity is flipping the script on power companies. Once seen as sleepy, stable investments, utilities have surged 43% since late 2023, with the sector up 20% this year alone. The driver? Data centers powering AI are guzzling energy at breakneck speed. US data-center electricity demand could jump 20-40% in 2025 and balloon from 35 gigawatts today to 78 GW by 2035, claiming nearly 9% of America's total power.
Why it matters
Expect a massive buildout of solar, batteries, and natural gas to keep the lights on, reshaping energy markets for a decade.