AI is Driving Utilities to Spend a Record $240 Billion in 2026. Buy These Stocks to Capitalize on the Power Surge.
Artificial intelligence consumes significant amounts of power, and utilities will have to spend heavily to meet demand.
Overview
Companies are investing heavily in artificial intelligence (AI). That said, AI can't "live" without electricity, so there's been a huge increase in demand for power. In fact, some industry watchers expect the utility sector to spend as much as $240 billion in 2026 to meet AI demand. There are some problems for investors to consider here, and some solutions.
Electricity demand grew 10% between 2005 and 2025. It is expected to grow by 60% between 2025 and 2045. There are multiple reasons for the increase, but a key factor is artificial intelligence and the data centers that house AI. Given the massive capital investment in AI underway now, utilities have little choice but to ramp up their own investments. This spending is a growth catalyst for utilities.
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Originally published at www.fool.com.