US Utilities: Is Data Center Excitement Running Out of Fuel?

Over the past several years, utility stocks have jumped in price as investors have bet on AI fueling sector demand growth. As AI continues to take the world by storm, its increased use requires more electricity to power its demand response, and that increased electricity demand is where investors have seen the largest attraction to utilities through data centers.

Morningstar’s special report on US utility data centers analyzes the sector across regions, highlights data center development and growth, and outlines how firms are positioned relative to their industry peers. Our research anticipates data center energy demand to triple by 2030, but not every utility stock is expected to benefit from this growth forecast, making it important for investors to understand the industry and its opportunities and challenges.

Download the report today to learn how this AI-fueled growth can shape your investment decisions.