Artificial intelligence is all over the news these days, and investors may be wondering how to get effective exposure to the theme.
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Of course, there’s a direct play by investing in the tech companies developing AI software and agents, or the hardware companies making the processing units. But another way to get in on the AI boom is through energy companies.
Why Invest in AI Grid Infrastructure Through Energy Stocks?
The computing power required for artificial intelligence is much higher than for conventional computing. For example, a ChatGPT search takes about 10 times more electricity than a traditional Google search, according to Kanoppi, a tech company that provides carbon footprint insights for websites.
In addition to the electricity needed to crunch the numbers, AI data centers also need power to keep the rows upon rows of computers cool enough to keep working.
“The compute and networking infrastructure being built to run current and future AI systems are increasing in both scale and power density,” says John Campbell, senior portfolio manager with Allspring Global Investments.
Each new generation of networked computing nodes can use an order of magnitude (about 10 times) more graphics processing units, or GPUs, and each next-gen GPU takes more power to run, he notes. Increasing distance between interlinked data centers also increases power usage. Also, higher power needs mean more heat put out by the AI systems, and that requires more advanced cooling that itself needs power.
“There is thus a magnifier effect on the energy resources needed to power each new data center,” Campbell says.
By 2030, the International Energy Agency expects global electricity demand for data centers to more than double to about 945 terawatt-hours, with AI being the most significant driver behind the increase. About half of that growth is projected to come from the U.S., the world’s biggest AI market, the agency says. In the U.S., there are more than 4,000 active data centers and more than 2,700 more have been announced or are under construction, according to a 2025 report from the American Edge Project, a technology advocacy group.
What Energy Sources Are Needed for AI Data Center Growth?
Experts think natural gas will be the primary fuel to power the AI boom, but there will also be renewables involved, as well as nuclear. Large cloud service providers that run many data centers, also known as hyperscalers, such as Alphabet Inc.’s (ticker: GOOG, GOOGL) Google, Amazon.com Inc. (AMZN) and Microsoft Corp. (MSFT), have all indicated they’re in favor of nuclear power because it doesn’t produce any greenhouse gas emissions.
That means the whole energy supply chain, from companies that extract natural gas to those that own power plants to an array of suppliers, stand to benefit from the AI boom and its related energy consumption.
Here’s a look at six energy stocks that could power up a portfolio amid the artificial intelligence data center buildout:
— Powell Industries Inc. (POWL)
— Array Technologies Inc. (ARRY)
— National Fuel Gas Co. (NFG)
— NextEra Energy Inc. (NEE)
— Archrock Inc. (AROC)
— Energy Vault Holdings Inc. (NRGV)
Powell Industries Inc. (POWL)
Campbell points to this energy sector electrical equipment manufacturer as a momentum play, or the buying of a stock that is rising in price with the expectation of selling it later for a profit.
“Powell is well positioned to capitalize on complex, high-value projects across natural gas, utilities and data center end markets,” he says.
The company has a $1.4 billion backlog of business, with commercial and industrial growth driven by data centers, he notes. He also points to expanding gross margins, improving product mix, good execution and a strong balance sheet with effectively no outstanding debt and about $475 million in cash.
Investing in Powell is not without risk, however, as shares are trading at roughly 31 times consensus forward earnings, which Campbell calls an “extended valuation.”
“If industry capital expenditures slow, the shares are at risk of a sell-off,” he says.
Array Technologies Inc. (ARRY)
This company makes ground-mounted, motorized systems that help solar arrays follow the sun to maximize electricity production. It also may be a bargain, with its shares down around 27% this year and Campbell calling it an “out-of-favor opportunity.”
The company grew its revenue 40% in 2025 as order bookings hit a record and volume grew significantly, but its shares sold off because of a disappointing outlook for 2026, Campbell says.
“The increased demand for its product set is fueled by increasing grid energy demand, coupled with the AI infrastructure buildout,” he says.
After the sell-off, the company’s shares are trading around 10 times consensus estimates for forward earnings, representing a significant discount to its nearest competitor, Nextpower Inc. (NXT), according to Campbell.
Of course, nothing in the stock market is a sure bet, and Campbell points to industry-wide price pressures and potential market share loss as risks.
National Fuel Gas Co. (NFG)
Turning to the extraction side of the AI energy equation, Campbell likes this natural gas producer operating in the productive Appalachian Basin that also gathers, transports, distributes and markets the fuel. The company’s utility arm provides natural gas services to about 750,000 residential, commercial and industrial customers in New York and Pennsylvania.
Campbell points to strong first-quarter financial results, with both revenue and earnings beating expectations because of higher pricing and increased operational efficiency. “NFG is actively positioning itself as a preferred partner for the massive power demand generated by AI and data centers,” Campbell says.
Company assets in Pennsylvania are strategically located near high-voltage transmission lines and fiber corridors, and a pipeline expansion is expected to deliver natural gas to a data center campus near Pittsburgh, Campbell says.
Risks for NFG include relatively high debt and the capital-intensive nature of the regulated businesses.
NextEra Energy Inc. (NEE)
In December, this utility company announced an expansion of its partnership with Google, saying the companies would collaborate to develop new gigawatt-scale data center campuses across the U.S.
NextEra’s energy generation capacity mix spans what will be needed for the AI data center buildout. More than half of this capacity is from renewable sources, followed by natural gas and then nuclear.
The company plans to add up to 30 gigawatts of generation capacity by 2035 to help power data centers and artificial intelligence, and as part of that it is expanding its nuclear power generation capacity. That includes another deal with Google to restart a nuclear plant in Iowa.
“More and more discussions point to the urgency of rebuilding nuclear power plants globally,” says John Murillo, chief business officer with B2Broker, a global fintech solutions provider for financial institutions. “Green energy alone cannot meet all the needs of the AI industry.”
Archrock Inc. (AROC)
Murillo also points to this natural gas compression services and equipment company that serves the U.S. oil and natural gas industry. Compressing natural gas helps it move from wells through pipelines to processing and storage facilities.
Archrock CEO Brad Childers in February said in remarks accompanying financial results that U.S. natural gas production is expected to reach record levels for the sixth year in a row in 2026, and the company expects continued steady demand for its compression services. Amid the demand, Archrock is planning $250 million to $275 million of capital expenditures this year to grow its capacity to meet customer expansion plans.
“We are leveraging our high-quality portfolio, financial strength and flexibility and innovative technology to profitably capture market opportunities presented by sustained natural gas demand growth, driven by LNG exports and the accelerating power needs of AI data centers,” Childers says.
Energy Vault Holdings Inc. (NRGV)
One drawback to renewables such as solar and wind for artificial intelligence data center power is their intermittency. They don’t produce electricity when the sun isn’t shining or the wind isn’t blowing.
To help smooth this out, companies are deploying batteries to store energy and release it when renewable assets aren’t actively generating electricity.
Energy Vault develops, deploys and operates utility-scale energy storage solutions including battery, gravity and green hydrogen technologies.
Last month, the company announced a deal with battery manufacturer Peak Energy to launch energy storage architecture with lower cooling requirements and improved ability to handle high-volatility power demands created by AI training and inference workloads.
“AI consumes a lot of high-power energy, which requires even greater efficiency and grid autonomy than any other industrial sector before,” Murillo says. “Energy Vault’s partnership with Peak Energy lets it deploy sodium-ion batteries using its unique software specifically targeting high-peak power draw.”
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6 Best Energy Stocks for the AI Power Grid Buildout originally appeared on usnews.com
