Key Points
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The International Energy Agency recently released a report about AI, noting that “there is no AI without energy.”
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Power demand from AI is expected to double by 2030 and continue to grow.
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The International Energy Agency (IEA) monitors the world’s energy needs, and it recently provided an important update on artificial intelligence (AI). The number that matters most is that electricity demand from AI data centers is projected to more than double between 2024 and 2030, rising from 415 terawatt-hours (TWh) to 945 TWh. The projection for 2035 is 1,200 TWh, nearly triple the 2024 figure. This is a potentially huge opportunity for power providers.
The scale is enormous, and so is the opportunity
It is hard to put 945 TWh into perspective without a reference point. To that end, the IEA noted that electricity demand from AI in 2030 will exceed Japan’s current power use. To be fair, AI is a global phenomenon, so this electricity demand isn’t coming from a single place. But data center electricity use has been growing at 12% per year since 2017, more than four times the overall rate of consumption growth. AI data center construction is a major driving force in the power sector that you simply can’t ignore.
There are many ways for investors to play the demand trends the IEA is highlighting. For example, demand is growing so quickly today that regulated electric utilities are struggling to keep up. Bloom Energy (NYSE: BE) has been a huge beneficiary, as its hydrogen fuel cells can provide off-grid power. It entered 2026 with a product backlog of $6 billion, up 140% over 2025’s starting backlog. The company only reports backlog once per year, but that $6 billion figure is likely higher today. However, that’s not the full picture, because each fuel cell sold comes with a service contract. Bloom Energy’s service backlog started 2026 at $14 billion, and will provide annuity-like income for years to come.
There’s also an increasing focus on nuclear power, which provides reliable, clean energy. Constellation Energy (NASDAQ: CEG) is one of the largest operators of nuclear power plants in the United States. It is already working with AI companies like Meta (NASDAQ: META) and Microsoft (NASDAQ: MSFT). Notably, it is not a regulated utility, so it can charge market rates for the electricity it produces.
Nuclear power plants can’t operate without fuel, which is what Cameco (NYSE: CCJ) produces. Operating out of politically and economically stable Canada, it is one of the world’s largest producers of uranium. The company expects demand for nuclear fuel to outstrip supply by the mid-2030s, which could increase pricing power for this picks-and-shovels nuclear stock.
And if you have a more conservative bent, a regulated utility like NextEra Energy (NYSE: NEE) might be a solid pick. It is doubling down on AI and data centers with its pending acquisition of Dominion Energy (NYSE: D), which has a monopoly in one of the world’s largest data center markets. With over three decades of annual dividend hikes behind it, even conservative investors will probably find NextEra and its 3% yield a compelling opportunity.
There are plenty of AI power opportunities to pick from
It is highly unlikely that the same investors who find Bloom Energy attractive will also find NextEra Energy attractive. But that’s the point. The AI story for electricity providers is both broad and large, allowing all types of investors to get involved. Don’t ignore what the IEA is telling the world about AI. Take some time to dig in, and you’ll likely find an investment opportunity that fits well with your portfolio.
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Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bloom Energy, Cameco, Constellation Energy, Meta Platforms, Microsoft, and NextEra Energy. The Motley Fool recommends Dominion Energy. The Motley Fool has a disclosure policy.