The demand for artificial intelligence (AI) is driving up data center power needs. Constellation Energy, the largest nuclear power company in the U.S., operates 14 nuclear plants and has secured long-term power agreements with Microsoft and Meta Platforms. Global power demand from data centers is expected to increase by 50% by 2027 and 165% by the end of the decade.

Top tech companies like Microsoft and Meta Platforms are securing power agreements with Constellation Energy, a leader in nuclear and clean energy. Constellation’s stock has recently declined but offers opportunities. The company operates best-in-class nuclear plants with a high capacity factor, positioning it well in the energy market.

Constellation Energy, with a substantial portfolio of energy assets, is in discussions for more deals with hyperscalers. The company recently signed a power purchase agreement with Meta Platforms and expects more deals to be announced soon. The company’s stock is projected to nearly double its adjusted earnings per share by 2028, with analysts forecasting 18% compound annual growth.

Constellation Energy is benefitting from tight energy markets and the increasing demand for data center power. The company’s fleet of reactors cleared a capacity auction, signaling a positive outlook for earnings. Analysts project strong growth in adjusted earnings per share, although the stock is currently trading at 29.9 times next year’s earnings forecast.

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Read more at Nasdaq: Should You Buy Constellation Energy While It’s Below $360?