Artificial intelligence (AI) has led to the biggest technological shift since the dot-com era. But this shift hasn’t just fueled upside in tech giants. It's also fueling massive upside in energy stocks.
This is a question of supply and demand, but on steroids. AI doesn’t just need power, it demands it. But if the United States is going to dominate the AI space, there are problems.
Those problems start with an aging electrical grid that isn’t adequate for the nation’s needs without AI.
As noted by Reuters, "some power companies are projecting electricity sales growth several times higher than estimates just months earlier. Nine of the top 10 U.S. electric utilities said data centers were a main source of customer growth, leading many to revise up capital expenditure plans and demand forecasts."
Goldman Sachs is bullish on the industry, estimating that about 47 gigawatts (GW) of additional power generation capacity will be needed to accommodate growth.
In addition, as noted by Wells Fargo, after years of flat power growth in the U.S., electricity demand could grow as much as 20% by 2030. Again, because of the AI data center demand.
"AI data centers alone are expected to add about 323 terawatt hours of electricity demand in the U.S. by 2030, according to Wells Fargo. The forecast power demand from AI alone is seven times greater than New York City's current annual electricity consumption of 48 terawatt hours. Goldman Sachs projects that data centers will represent 8% of total U.S. electricity consumption by the end of the decade," says CNBC.
When you consider the 24/7, 365-day-a-year demand from AI, you can see that solving the supply side of the equation requires energy in many forms. That being said, investors should seriously consider energy stocks. Here are two attractive options.
Energy Stocks to Buy: PG&E Corporation
PG&E Corp. (NYSE: PCG) is a holding company that engages in the generation, transmission, and distribution of electricity and natural gas. The company specializes in energy, utility, power, gas, electricity, solar and sustainability.
It's also the parent company of Pacific Gas and Electric Company, an energy company that serves 16 million Californians across a 70,000-square-mile service area in Northern and Central California.
PCG benefits from growing electricity demand in California, which is projected to increase significantly over the next two decades. Its focus on renewable energy sources aligns with the state’s clean energy policies and continued electrification of buildings, transportation and other sectors of the economy.
PCG stock is down 20.76% in 2025. However, the stock has a consensus price target of $20.55, an upside of over 28%. Plus, like most utilities stocks, investors get a dividend that comes with a dividend yield of 0.63%,
Energy Stocks to Buy: Sempra Energy
Another of the top names in energy stocks is Sempra Energy (NYSE: SRE), Sempra is a leading North American energy infrastructure company focused on delivering energy to nearly 40 million consumers.
As the owner of one of the largest energy networks on the continent, Sempra is electrifying and enhancing the energy resilience of some of the world’s most significant economic markets, including California, Texas, Mexico, and global energy markets.
There are substantial reasons to buy and hold Sempra for the long term. For one, while we wait for Sempra to push aggressively higher on data center power demand, we can collect its current yield of about 3%.
Two, Goldman Sachs is bullish on the industry, estimating that about 47 gigawatts (GW) of additional power generation capacity will be needed to accommodate growth. All of which is a substantial catalyst for stocks, such as Sempra.
Since April, it has run from about $62 to a high of $89, thanks in part to the explosive energy demand of AI data centers. However, analysts remain bullish on SRE stock and give it a consensus price target of $96.17, which is an 8% increase.
The Bottom Line on the Artificial Energy Boom
AI isn't just a technology trend, it's an energy event. The rapid buildout of data centers, cloud infrastructure, and high-density computing is reshaping the U.S. utility landscape and accelerating demand projections for the next decade.
That positions energy stocks like PG&E Corp. and Sempra Energy as strategic investments rather than traditional utility plays. Both are tied directly to the infrastructure, grid modernization and regional expansion required to support round-the-clock AI workloads.
While no investment is without risk, the analyst outlooks, price targets, and macro tailwinds suggest that both stocks could deliver attractive upside as the artificial energy boom plays out. For investors seeking exposure beyond traditional tech winners, energy utilities may be the sector to watch in 2026 and beyond.
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