The 1 Utility Stock You Should Be Buying for the AI Boom

"The artificial intelligence (AI) sector continues to explode, driving massive investments in computing power and data infrastructure. Companies are racing to build advanced models and applications, fueling a market projected to reach trillions in value. However, this rapid expansion is hitting real-world limits. Their electricity consumption is projected to soar, potentially reaching 6.7% to 12% of the nation's total power by 2028 - enough to power 24 million homes. It is demand the existing electric grid cannot handle. Microsoft ( NASDAQ:MSFT ) CEO Satya Nadella recently underscored this being AI's key issue, saying, "compute is not the bottleneck, but energy and data center space is.""

"Spun off from the old General Electric in 2024 as it broke itself up into three separate units, GE Vernova specializes in energy technologies, including power generation, electrification systems, and grid equipment. The company provides gas turbines, wind energy solutions, and advanced grid components like transformers and switchgear, essential for reliable electricity delivery. With the recent acquisition of the remaining stake in Prolec GE, GE Vernova is bolstering its transformer production, targeting North American utilities, industrials, and data centers. This positions it as a key player in upgrading aging infrastructure to support rising electricity demands from electrification and digitization."

The artificial intelligence sector is rapidly expanding and driving massive investments in computing power and data infrastructure. Electricity consumption from AI workloads is projected to reach 6.7% to 12% of the nation's power by 2028, equivalent to powering 24 million homes. Existing electric grids lack the capacity to support that surge in demand. Data centers and hyperscalers are increasingly constrained by power availability and data center space rather than compute. GE Vernova, spun off in 2024, supplies gas turbines, wind solutions, transformers, and switchgear to utilities, industrials, and data centers. GE Vernova's enhanced transformer capacity and partnerships position it to help upgrade aging infrastructure and support electrification.

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