From Financial Modeling Prep: 2025-06-04 07:56:00

The race for artificial intelligence is straining U.S. data centers’ electricity supply. Morgan Stanley predicts a 45 gigawatt shortfall by 2028 due to AI infrastructure growth and lack of federal grid expansion plans. Companies fast-tracking power delivery could benefit from this energy rush.

Texas’s Senate Bill 6 aims to expedite new power projects, benefitting companies like Vistra Corp., NRG Energy, ExxonMobil, and Energy Transfer. Approval of Energy Transfer’s “Stargate” pipeline could further impact the energy sector, offering opportunities for investors in the AI energy theme.

Natural gas and nuclear power are key solutions to bridge the energy gap. Gas plants offer quick construction and flexible output, while nuclear plants provide carbon-free baseload power. These technologies are essential for meeting the demands of continuous AI operations.

Morgan Stanley highlights top stock picks poised to benefit from the increasing demand for “time to power.” Companies like EQT Corporation, Energy Transfer, and Sempra are well-positioned to capitalize on the surge in energy needs for AI infrastructure. Investors can track performance metrics using APIs to make informed decisions.

The AI power wave is reshaping U.S. power markets with a projected 45 GW bottleneck. Legislative and regulatory changes, such as Texas’s Senate Bill 6 and Energy Transfer’s pipeline proposal, serve as catalysts for energy companies. Focusing on sector valuations and company fundamentals can help investors navigate this evolving landscape and capitalize on the growing demand for AI power infrastructure.



Read more at Financial Modeling Prep:: The AI Energy Rush: Power Bottlenecks and Winning …