Nuclear, Natural Gas, or Clean Energy? The AI Power Crisis Sparks a New Energy Stock Race

💬 Hot Take: Which energy source will power the AI boom best? Natural gas, nuclear, or renewables? Drop your pick!

While markets still debate the spectacular early AI-driven gains of NVIDIA and Palantir, a more fundamental question has emerged: powering AI.

As global data centers enter a boom phase, electricity — not computing power — has become the hidden fuel determining how far the AI race can run.

Asset managers including BlackRock have clearly stated that companies supplying power to data centers may be the biggest winners in the entire AI supply chain.

Deloitte projects that U.S. AI data center electricity use will surge 30-fold between 2024 and 2035.

The International Energy Agency (IEA) forecasts global data center power demand will double to about 945 terawatt-hours by 2030.

Facing this gap, which energy sources will dominate supply?

Natural Gas: The Urgent “Stabilizer”

Natural gas power is fast to deploy and cost-controllable, making it the short‑term anchor filling the power gap.

• $National Fuel Gas(NFG)$

  Focused on the Appalachian Basin, it covers gas production, transmission, and distribution. It is positioning itself as a key partner for AI data centers, piping gas directly to data center parks near Pittsburgh via expansion projects.

• $Archrock(AROC)$

  Provides natural gas compression services, moving gas from wellheads to processing facilities. Its CEO notes that AI data center demand and LNG exports are driving sustained growth, and the company is expanding capacity to support customer scaling plans.

Nuclear Power: Tech Giants’ “Long‑Term Bet”

Nuclear power — with zero emissions — is favored by Google, Microsoft, and other tech leaders, representing a strategic decade‑ahead solution.

• $Constellation Energy Corp(CEG)$

  Restarting a reactor at Pennsylvania’s Three Mile Island exclusively to power Microsoft’s AI data centers — a landmark signal of nuclear’s comeback.

  It is already the U.S.’s nuclear leader, producing more nuclear power than all other U.S. utilities combined. Analysts see over 25% upside to their 12‑month target price.

• $GE Vernova Inc.(GEV)$

  The power‑focused spin‑off from General Electric, covering nuclear reactors, gas turbines, and grid optimization.

  2025 orders jumped to $59.3 billion, with a massive backlog of $150 billion — about four years of work — as AI data centers strain and upgrade grids.

Diversified Energy & Energy Storage

• $NextEra(NEE)$

  Over half its generation is renewable, with natural gas and nuclear assets too. It plans 30 GW of new capacity by 2035 and partners with Google on data center parks, using a multi‑energy mix to meet AI’s flexible power needs.

• $Powell(POWL)$

  Electrical equipment maker focused on high‑value data center projects. Boasts a $1.4 billion backlog, strong balance sheet, and nearly no debt.

• $Array Technologies Inc.(ARRY)$

  Makes solar tracking systems to boost PV efficiency. 2025 revenue rose 40%, but the stock pulled back on muted guidance. It now trades at ~10x forward earnings — a deep discount to peers.

• $Energy Vault Holdings, Inc.(NRGV)$

  Specializes in energy storage using sodium‑ion batteries and software to manage the volatile power loads of AI training and inference, solving renewable intermittency.

Investment Takeaway

The AI power sector has a clear, layered structure:

• Short to medium term: Natural gas players (NFG, Archrock) lead with mature, fast‑deployable infrastructure.

• Medium term: Power equipment makers (GE Vernova, Powell) benefit from exploding order backlogs, providing multi‑year visibility.

• Medium to long term: Nuclear and diversified utilities (Constellation, NextEra) win long‑term AI demand with policy and tech‑giant support.

• Storage: Energy Vault and Array Technologies provide critical stability for renewables, growing more valuable as AI demands ultra‑reliable power.

In the AI era, electricity is no longer just infrastructure — it has become a defining force shaping the entire industry.

For SG users only, Welcome to open a CBA today and enjoy access to a trading limit of up to SGD 20,000 with unlimited trading on SG, HK, and US stocks, as well as ETFs.

🎉Cash Boost Account Now Supports 35,000+ Stocks & ETFs – Greater Flexibility Now

Find out more here.

Complete your first Cash Boost Account trade with a trade amount of ≥ SGD1000* to get SGD 688 stock vouchers*! The trade can be executed using any payment type available under the Cash Boost Account: Cash, CPF, SRS, or CDP.

Click to access the activity

Other helpful links:

• 💰Join the TB Contra Telegram Group to Get $10 Trading Vouchers Now🎉

• How to open a CBA. How to link your CDP account. Other FAQs on CBA. Cash Boost Account Website.