The AI revolution has taken the world by storm…
Nearly every company is looking for ways to hop on the bandwagon… and every investor is looking for the best way to capitalize on its enormous growth potential.
Investing in tech leaders like Nvidia (NVDA) is the obvious—and sexy—way to go.
But it’s not the only way to profit from AI’s unlimited upside.
One “boring” sector provides a “pick-and-shovel” way to play the megatrend…
We’re talking about utilities.
When you hear “utilities,” you probably don’t get super excited… but keep reading, and we’ll explain why this sector is on the precipice of explosive growth… and how you can position yourself to benefit.
A unique opportunity for the utility sector
New AI data centers are popping up at an astounding rate… Data centers in the US have doubled since 2021.
And they’re bigger than ever before. Companies like Oracle (ORCL) plan to build hundreds of new data centers, each requiring enormous amounts of power. And tech giants like Meta (META) are building massive eight-story data centers spanning 60 football fields, consuming more electricity than entire cities.
Goldman Sachs predicts the world will need 47 gigawatts of new power generation by 2030 just to support data center growth. To put that number into perspective, it’s equivalent to powering over 32 million homes—a 21% increase in America’s total housing supply.
Even wilder: That’s a conservative estimate.
These massive data centers also require enormous amounts of land, water, and other infrastructure.
Put simply, AI is driving explosive growth in power demand. And the current energy infrastructure isn’t enough to keep up.
Energy infrastructure investments are projected to reach $150 billion by 2029 to build out capacity for these new power demands.
The situation creates an incredible opportunity for the utility sector.
Energy and utility stocks are already starting to reap the rewards in the regions with the most data center growth.
For instance, Virginia has the most data centers in the country—more than the next five largest markets combined—thanks to low energy costs and state tax incentives. And regions seeing significant data center growth include Texas, California, Arizona, and Oregon.
Utility companies in these areas are evolving from stable, predictable investments to dynamic growth opportunities. Dominion Energy, Duke Energy, and American Electric Power are just a few examples of companies trading near their 52-week highs. And many of them are cheap at current levels given their growth potential.
The situation is similar to telecommunications companies during the internet and smartphone booms. AT&T (T) and Verizon (VZ) used to be boring dividend stocks… until the internet revolution turned them into major growth stories.
The bottom line: Utilities—once considered slow-growing dividend stocks—are now poised to become the backbone of the AI revolution… and become major growth players in the process.
How to capitalize on the utility boom
There are several ways investors can position themselves to profit from the situation…
- Look beyond traditional tech stocks: Consider utility companies like Duke Energy and American Electric Power as growth plays rather than just dividend stocks.
- Explore infrastructure companies: With billions being poured into building out capacity, companies involved in electrical components and energy infrastructure are set to thrive.
- Diversify across the energy spectrum: From natural gas to solar and uranium, the increased energy demand will lift multiple subsectors.
- Keep an eye on innovative solutions: Watch for companies developing “Bring Your Own Power” (BYOP) solutions, which could revolutionize how data centers source their energy.
Daniel just recommended a stock in Curzio Research Advisory that’s poised to benefit tremendously from this trend. It’s a power company with an excellent track record of growing earnings while rewarding shareholders.
And shares are set to skyrocket over the next couple of years as the AI revolution continues to unfold.
