Powering the Machine: Four Energy Stocks Feeding Data Centers

One of these companies has doubled in value this year, and analysts are struggling to raise their price targets fast enough

Tensions between China and the U.S. are shaking the market again, raising the question of how to navigate equities in such a noisy environment. Fundamentally, nothing has changed — Oracle’s executives just reaffirmed that growth in cloud demand remains massive.

The company raised its long-term outlook: it now expects cloud revenue to reach $166 billion and total revenue up to $225 billion by FY 2030. That’s a direct confirmation that spending on data centers and compute infrastructure is still accelerating.

Meanwhile, WSJ reports a coming boom in power-plant construction — demand is so intense that even Caterpillar is selling its generators straight off the truck.

The Real Winners of the Data Center Gold Rush

In today’s paid post, we’ll look at the companies powering this data-center build-out — the ones built for long-dated options and steady cash flow, even when BTC slips under $105K.

Battle for Power

Over the past two years, the world has started to understand that artificial intelligence isn’t limited by software or chip supply — it’s limited by power. Every new GPU rack, every training cluster, every edge node consumes electricity on a scale that the existing grid simply wasn’t built for.

The result is a silent arms race, one that’s happening not in Silicon Valley but across the American power grid.

The U.S. is already trying to catch up. According to consulting firm ICF, starting in 2027 the country is expected to deliver nearly 80 gigawatts of new generation capacity, roughly double the pace of the past five years. But even that won’t be enough. In many regions, data centers won’t be able to connect to the grid until the 2030s, because transmission lines are overloaded and there’s a huge backlog of interconnection requests.

“If the grid doesn’t have power and you need to generate compute capacity, what are your alternatives?”

— Bill Stein, CIO of Primary Digital Infrastructure

That question defines the next investment cycle. The answer is that hyperscalers and AI firms are turning to independent power producers and utilities — companies that can build, own, and operate generation assets dedicated to data centers. This is where the next capital rotation is moving: away from pure software multiples and toward physical infrastructure with long-term cash flow.

The Market Entry Strategy: How to Conquer Analytical Paralysis

It’s also where the split appears between two types of energy companies. On one side are the technology builders — fuel-cell and hydrogen innovators like Bloom Energy, who are trying to invent cleaner, modular sources of power for the future. Their business models depend on adoption curves and falling costs. They represent the R&D frontier of the new grid.

On the other side are the operators — established producers with assets already connected to the network: traditional utilities, gas and nuclear operators, and diversified power generators. These are companies that sell megawatts, not prototypes.

Why they matter now: AI has created a new class of buyers who don’t care about volatility in demand. Data centers need electricity 24/7, and they sign long-term power purchase agreements (PPAs) — sometimes for 10 or 20 years — locking in predictable revenue for the supplier. For power producers, this is the kind of customer the industry has been waiting for: deep-pocketed, creditworthy, and committed to expansion.

At the same time, the renewable transition has become less about ideology and more about logistics. Solar and wind reduce the carbon footprint of AI infrastructure — a political necessity for companies like Microsoft, Google, and Amazon — but they also stabilize long-term costs. Once a renewable project is built, its marginal cost of generation is near zero. That’s why even traditional utilities are pouring capital into hybrid portfolios: gas for reliability, renewables for sustainability, and storage to balance both.

This convergence is what creates the new energy hierarchy.

The AI build-out isn’t just about compute chips — it’s about who can deliver the electrons that power them. The winners in this cycle will be companies that can provide guaranteed capacity, scalable projects, and cleaner energy footprints.

The market is starting to reflect that shift. Legacy producers once treated as dull dividend plays — utilities, nuclear operators, even gas turbine manufacturers — are being repriced as critical infrastructure for the AI economy. Meanwhile, next-generation players are betting on modular systems that can bring compute power off-grid, directly to where it’s needed most.

Either way, the equation is the same:

AI expansion = electricity expansion.

And the fight for megawatts has just begun.