Quick Take: Investors looking for the best AI power demand stocks to buy should consider companies across the energy supply chain. By 2030, AI data center power consumption is projected to triple to 400 terawatt-hours (50 gigawatts annually), consuming approximately 9% of total U.S. electricity. To meet this demand, utilities are turning to renewable energy providers like First Solar (FSLR) and natural gas producers like EQT Corp. (EQT) to help maintain reliable power grids.
The AI Electricity Surge: Why Data Centers Need 50 Gigawatts of Power
With AI Power Demand on the Run, Buy these Stocks
Some of the biggest opportunities can be found in data center power demand.
By 2030, power demand is expected to triple thanks to artificial intelligence. All of which could drive further demand for renewable energy sources.
According to Mizuho analysts, “The demand from data centers will reach 400 terawatt hours, or 50 gigawatts annually, representing about 9% of total U.S. electricity demand by the end of the decade. About 30% of current data center demand is located in the Mid-Atlantic, followed by Texas, home to 13%.”
Renewable Energy Surge: Solar Powering Hyper-Scale Data Centers
First Solar Inc. (NASDAQ: FSLR) — Benefiting from 7GW Annual Solar Demand
The firm also believes renewables will see big demand from that, with solar demand increasing by seven gigawatts a year. That being said, you may want to keep an eye on solar giants, like First Solar (SYM: FSLR), which, according to Mizuho, could see another $17 of upside.
Utility-scale solar manufacturers with domestic supply chain dominance act as powerful economic moat stocks, protecting revenue margins through long-term corporate power purchase agreements.
Clean Natural Gas: The Reliability Bridge for Uninterrupted AI Power
EQT Corporation (NYSE: EQT) — $42 Price Target & Deleveraging Catalysts
We can also look at natural gas.
According to Mizuho, “Natural gas demand is expected to increase by up to 4 billion cubic feet per day by 2030, or 4% of current U.S. production, according to Mizuho. If the expansion of renewables proves slower than expected, gas demand could rise by up to 8 bcf/d by the end of the decade,” as highlighted by CNBC.
With that, you may want to keep an eye on gas stocks, like EQT Corp. (SYM: EQT), which was just upgraded to a buy with a $42 price target at Wells Fargo.
The firm added that, “EQT recently reported a smaller than forecast Q2 adjusted loss, and transaction risk has exited with the just-completed Equitrans acquisition, allowing the company to fast-track its deleveraging plans,” as noted by Seeking Alpha.
Investors building an income portfolio around energy infrastructure equities can use Portfolio Payouts to structure monthly distribution schedules.
Frequently Asked Questions About AI Power Demand Stocks
Q1: How much power will AI data centers consume by 2030?
A: According to Mizuho research, data center electricity demand will reach 400 terawatt-hours (50 gigawatts annually) by 2030, representing approximately 9% of total U.S. electricity demand.
Q2: Why are natural gas stocks benefiting from the AI boom alongside renewable energy?
A: Solar and wind power are intermittent, while AI data centers require 24/7 continuous power. Natural gas provides reliable baseload power generation to support the electric grid during high-demand workloads.
Q3: What are the best stocks to buy for AI power infrastructure?
A: Key market leaders among the best AI power demand stocks to buy include utility-scale solar manufacturer First Solar (FSLR), which supports clean energy expansion, and EQT Corporation (EQT), a low-cost natural gas supplier. Major electrical equipment manufacturers and utility providers also stand to play a role in meeting rising electricity demand.
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Written by Ian Cooper