5 Strong Buy Utility Stocks Are Potential AI/Data Center Lottery Winners

"Due to their continuous 24/7/365 operations, data centers consume electricity constantly. These operations involve running large numbers of servers, cooling systems, networking equipment, and other infrastructure. The amount of electricity used by data centers varies widely based on size, capacity, efficiency, and geographic location, but demand is always present. The numbers are staggering, as data centers collectively account for a notable portion of global electricity usage."

"We decided to screen our 24/7 Wall Street utility stock database, looking for the high-yielding stocks that could benefit from the massive increase in electricity use. All are located in geographic regions of the country where many of the current and future AI/data centers are located. All offer stable and dependable passive income, and all five are rated Buy by top Wall Street firms."

"The S&P 500 utilities sector has gained nearly 19% from its low in mid-February and has outperformed the large-cap benchmark index by 3%. Equities will be impacted if the major stock market indices experience a significant decline. However, history shows that stodgy utility stocks are likely to hold their ground much better than high-flying technology stocks, especially those chasing the artificial intelligence mania."

Data centers operate continuously and consume large amounts of electricity for servers, cooling, networking equipment, and other infrastructure. Data centers worldwide consumed approximately 200 terawatt-hours of electricity in 2020, about 1% of global electricity demand, and that figure has likely risen significantly since. Screening high-yield utility stocks identified candidates located near existing and planned AI and data center hubs, offering stable passive income and Buy ratings from major Wall Street firms. The S&P 500 utilities sector rallied nearly 19% from its mid-February low and outperformed the large-cap benchmark by 3%. Utility stocks tend to retain value better than technology stocks during market corrections.

Read at 24/7 Wall St.