Why Data Centers Are Turning Energy Stocks Into AI Plays

Hyperscalers are investing in data centers at an astounding pace. However, these data centers are facing a major bottleneck: energy. While constructing a data center may take up to two years, developing the necessary grid infrastructure can take four to 10 years, or longer.

Demand is only going up from here. According to the International Energy Agency, data center power consumption averaged about 540 kilowatt-hours (kWh) per capita in 2024, with projections indicating it could rise to 1,200 kWh per capita by 2030.

Companies with power capacity to meet the expanding energy demands of data centers, such as Constellation Energy (NASDAQ: CEG) and Vistra Energy (NYSE: VST), are positioning themselves as key players amid this AI-driven capex boom.

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