Southern Co

SO: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$51.00	Ldfpfm	Fqffrrjlhb

US Utilities: Will Data Center Growth Transform the Sector?

Travis Miller

Apr 8, 2024

Data center electricity demand growth is a key source of upside for US utilities that we don't think the market appreciates. We consider the sector 9% undervalued as of April 8 in part because we expect electricity demand growth to top market expectations, requiring substantial energy infrastructure investment and boosting utilities' earnings growth.

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