5 Once-Sleepy Dividend Utility Companies Are Striking Massive Deals With Big Tech

"Big tech companies are increasingly striking direct deals with utility companies to secure reliable, long-term energy supplies as their power needs surge, mainly driven by data centers, cloud computing, and artificial intelligence. These agreements often include power purchase agreements for renewable energy such as wind and solar, allowing tech firms to lock in stable prices while helping utilities finance new generation and grid upgrades."

"In some cases, companies are also partnering with utilities on energy storage, transmission expansion, and even next-generation sources like small modular nuclear reactors to ensure around-the-clock power. For utilities, these deals provide guaranteed demand and investment capital. At the same time, tech companies offer energy security, cost predictability, and progress toward sustainability goals-making the partnerships strategically crucial for both sides."

"Surging demand for electricity, which will only continue to grow, has made some of America's oldest and best utility companies one of the best investments for growth and income investors who would like to participate in the AI/data center revolution but would rather play it from a safer angle. What could be a better avenue than utility stocks that pay dependable, and in some cases large, dividend payments every quarter?"

Big tech companies are securing reliable, long-term energy supplies from utility companies to meet surging power demands driven by data centers, cloud computing, and artificial intelligence. These agreements frequently use power purchase agreements for wind and solar, enabling tech firms to lock in stable prices and helping utilities finance new generation and grid upgrades. Companies are also partnering on energy storage, transmission expansion, and next-generation sources like small modular nuclear reactors to achieve around-the-clock power. Utilities receive guaranteed demand and investment capital, while tech firms gain energy security, cost predictability, and progress toward sustainability goals. Renewable-focused utilities offer dividends attractive to income investors.

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