Data centers continuously require a substantial amount of electricity due to their operations, which include servers and cooling systems. This demand is expected to escalate, with projections indicating data centers could consume up to 21% of global energy by 2030. Wall Street maintains a positive outlook on utility stocks as they remain resistant to economic fluctuations. Goldman Sachs highlights strong performances in this sector, especially as potential interest rates lower in 2025. Hyperscale data centers amplify this need, laying the groundwork for continued investment in utilities due to their reliability and necessity during recessions.
Due to their continuous operations, data centers consume electricity constantly, involving large servers, cooling systems, and other infrastructure, with demand expected to rise significantly.
Goldman Sachs remains very positive on top utility stocks, viewing them as recession-resistant due to consistent demand, potentially benefiting from lower interest rates in 2025.
Hyperscale data centers require over 100 megawatts of power, equivalent to the annual consumption of nearly 450,000 electric cars, underscoring the skyrocketing demand for electricity.
Utilities are viewed as one of the most recession-resistant sectors, as power generation remains necessary irrespective of economic conditions, making them attractive during downturns.
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