Artificial intelligence workloads are accelerating US electricity demand growth by a decade, driving increased interest in nuclear power as a reliable energy source. The Department of Energy forecasts data centers will consume up to 12% of US electricity by 2028. Key US nuclear operators like Constellation Energy, Vistra, and NextEra Energy are capitalizing on this trend with signed long-term contracts from hyperscalers and plans for nuclear restarts. These companies offer diverse strategies: Constellation focuses purely on nuclear power, Vistra combines nuclear with gas and partners with NVIDIA, and NextEra leverages a large customer pipeline and nuclear restarts. Investors should watch regulatory developments and contract announcements for further growth signals.
The Utilities Select Sector SPDR Fund (XLU), popular for AI-related utility exposure, has gained only 3.52% year-to-date, while the Tema Electrification ETF (VOLT), focused on electrical equipment for data centers, surged 31.68%. XLU holds mostly reg...
Constellation Energy has been reaffirmed as a Strong Buy with an increased price target of $449 following its Q2 2026 earnings. The company benefits from AI-driven power demand, securing 920 MW in new long-duration nuclear contracts and potential upr...
