In this report, we take a look at the 10 Best Energy Stocks Capitalizing on the Data Center Boom.
According to the U.S. Department of Energy (DOE), data centers are among the most energy-intensive building types as they consume 10 to 50 times as much energy as a typical commercial office building. It added that data centers account for approximately two percent of the country’s electricity use.
In a report in April, the International Energy Agency (IEA) reported that global electricity generation to supply data centers is forecast to grow from 460 terawatt hours (TWh) in 2024 to over 1,000 TWh in 2030 and 1,300 TWh in 2035. It added that over the next five years, renewables are seen to account for nearly half of the additional demand. This is followed by natural gas and coal, with nuclear energy expected to play an increasingly important role towards the end of this decade and beyond.
“Taken together, renewables remain the fastest-growing source of electricity for data centers, with total generation increasing at an annual average rate of 22% between 2024 and 2030, meeting nearly 50% of the growth in data center electricity demand. This growth is primarily driven by the rising deployment of wind and solar PV in power systems across the globe, with some of the new capacity financed through PPAs with technology companies. Some data center operators also invest directly in co-located renewables,” the IEA said.
The IEA cited the United States and China as the current largest data center markets globally, with most of the electricity consumed produced from fossil fuels. However, the IEA noted that the growth of fossil fuel power generation after 2030 is seen to decelerate due to the deployment of renewables and nuclear power.
“With a share of over 40%, natural gas is currently the biggest source of electricity for data centers in the United States, followed by renewables – mostly solar PV and wind – with 24%, as well as nuclear and coal power with shares of around 20% and 15%, respectively. As demand growth is particularly rapid over the next five years, natural gas is the largest source of additional supply, adding over 130 TWh of annual generation until 2030. Renewables are the second-largest source of additional electricity supply, adding 110 TWh to the data center electricity supply between 2024 and 2030. This is mainly due to the continuing increase in the share of wind and solar PV in the electricity mix of most states, as well as some data center operators investing in co-located renewables,” the IEA said.
The agency noted that nuclear power will play a vital role in meeting data center demand in the U.S. after 2030, when the first small modular reactors (SMRs) are expected to be commissioned.
“Technology companies have plans to finance more than 20 GW of SMRs to date, though successful development of the technology could open up even larger opportunities. Together with the ongoing increase in renewable electricity generation, the expansions of SMRs reduce the need for additional natural gas-fired generation so that by 2035, low-emissions sources account for over half of the United States’ data center electricity supply mix,” the IEA said.
Considering these developments, let’s take a look at the 10 Best Energy Stocks Capitalizing on the Data Center Boom.
Our Methodology
To compile this list, we screened U.S.-listed energy companies that have exposure to the data center sector. Our selection focused on stocks with potential upside based on analyst consensus, placing the stock with the highest potential growth at the top. Additionally, we also included the number of hedge funds holding stakes in these companies as of the first quarter of 2026.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
Note: All pricing data is as of market close on June 9, 2026.
10. Dominion Energy Inc. (NYSE:D)
Upside Potential: 2.64%
Number of Hedge Fund Holders: 37
Dominion Energy Inc. (NYSE:D) is one of the 10 Best Energy Stocks Capitalizing on the Data Center Boom. Based on 18 analyst ratings compiled by CNN, 83% assigned a Hold rating to Dominion Energy, while 11% assigned a Buy rating. The stock has an average price target of $68, a 2.64% upside from the current price of $66.25.
While energy markets continue to see volatility, investor attention remains focused on Dominion’s acquisition-related development. In May, Dominion and NextEra announced they had entered into a definitive agreement to combine in an all-stock transaction that will, in effect, create the largest regulated electric utility business.
According to the companies, the combined entities will be more than 80% regulated and serve approximately 10 million utility customer accounts across the states of Florida, Virginia, North Carolina, and South Carolina. As a result of the transaction, the combined firm will own 110 gigawatts (GW) of generation across a broad mix of energy sources.
Upon the announcement of the planned merger, several analysts had raised their price target on Dominion. On May 26, Mizuho increased its price target on Dominion to $72 from $66 while maintaining a Neutral rating on the stock. On May 28, Jefferies raised its price target on Dominion to $76 from $65 while upgrading its rating to Buy from Hold.
For the first quarter of the year, Dominion Energy reported a GAAP net income of $621 million or $0.69 per share, compared to the $665 million or $0.77 per share for the same period a year ago. Operating earnings for the period amounted to $847 million or $0.95 per share, compared to operating earnings of $803 million or $0.93 per share for the same period in 2025.
Dominion Energy Inc. provides regulated electricity and regulated natural gas services. The company develops and operates regulated offshore wind and solar power projects and produces carbon-free electricity.
9. Bloom Energy Corp. (NYSE:BE)
Potential Upside: 7.85%
Number of Hedge Fund Holders: 91
Bloom Energy Corp. (NYSE:BE) is one of the 10 Best Energy Stocks Capitalizing on the Data Center Boom. On June 10, Morgan Stanley analyst David Arcaro reiterated a Buy rating on Bloom Energy with a $310 price target, according to a report by TipRanks.
On the same day, TheFly reported that Morgan Stanley remains optimistic about Bloom Energy despite reports that Crusoe paused its development activities at a 1.8 GW data center campus in Cheyenne, WY, which was designed to be partly powered by 900 MW of Bloom fuel cells.
Morgan Stanley said contractual provisions with Bloom Energy customer, AEP, should protect the firm’s earnings over the delivery schedule. The analyst maintained confidence in Bloom Energy’s full-year and medium-term forecasts.
Based on 31 analyst ratings compiled by CNN, 45% assigned a Buy rating to Bloom Energy, while another 45% assigned a Hold rating. The stock has an average price target of $280, representing a 7.85% upside from the current price of $259.61.
Bloom Energy Corp. is engaged in the manufacture and installation of solid oxide fuel cell systems, which provide ultra-resilient, highly scalable onsite electricity.
8. Southern Company (NYSE:SO)
Potential Upside: 9.74%
Number of Hedge Fund Holders: 54
Southern Company (NYSE:SO) is one of the 10 Best Energy Stocks Capitalizing on the Data Center Boom. On June 8, Investing.com reported that Southern Company forged an equity distribution agreement with 16 banks, which will serve as sales agents and forward purchasers.
According to the report, the agreement permits the sale of the company’s common stock through the sales agents, who may play the role of agents or purchase shares as principals. Barclays Capital Inc., BMO Capital Markets Corp., and BofA Securities Inc. are some of these sales agents, among others. Additionally, the firm may also enter forward sale agreements with the same institutions or their affiliates. These forward purchasers will attempt to borrow shares from third parties and sell them through sales agents to hedge the forward sale agreements, according to the agreement.
In May, Southern Company celebrated 25 years of consistent dividend increases by ringing the bell at the New York Stock Exchange. Southern Company chairman, president, and CEO Chris Womack said the annual dividend increases reflect the company’s commitment to shareholders. He added.
“As we mark 25 consecutive years of dividend increases, I’m reminded that this kind of consistency isn’t a headline—it’s a daily commitment. It’s earned through the work required to keep our system running safely and reliably, to solve problems before they’re seen, and to deliver energy that customers can depend on. That steady performance—day after day, year after year—is what allows us to continue serving our customers and communities.”
Based on 27 analyst ratings compiled by CNN, 63% have placed a Hold rating on Southern Company, while 26% have assigned a Buy rating. The stock has a median price target of $102, a 9.74% upside from the current price of $92.95.
Southern Company is an energy provider with electric operating companies in three states, natural gas distribution companies in four states, and a power generation company. It also provides energy distribution solutions and telecommunications services.
7. CenterPoint Energy, Inc. (NYSE:CNP)
Upside Potential: 10.88%
Number of Hedge Fund Holders: 42
CenterPoint Energy, Inc. (NYSE:CNP) is one of the 10 Best Energy Stocks Capitalizing on the Data Center Boom. Based on 20 analyst ratings compiled by CNN, 50% rated the stock Hold, while 45% rated it Buy. As of June 9, the stock has an average price target of $47, representing 10.88% upside from the current price of $42.39.
In May, Jefferies analyst Jamieson Ward reduced the price target on CenterPoint Energy to $48 from $49 while maintaining a Buy rating on the stock, according to a report by Investing.com. The analyst noted that financing remains de-risked, highlighting that cash management is supporting $1 billion of capital expenditures without additional equity.
Earlier in May, Morgan Stanley analyst David Arcaro reduced its price target on the stock to $39 from $41 while maintaining an Equal Weight rating as it updated its price targets for Regulated & Diversified Utilities / IPPs in North America for April, according to a report by TheFly.
For the first quarter of the year, CenterPoint Energy reported a higher net income of $316 million, or $0.48 per diluted share, compared to the $297 million or $0.45 per diluted share in the same period last year.
In its first quarter earnings report, the company announced a pipeline of over 12 gigawatts of firmly committed industrial load. By 2029, the company is expecting to energize 8 gigawatts of projects in the Greater Houston area, with 3.5 gigawatts already under construction.
CenterPoint Energy, Inc. is an energy delivery firm engaged in electric transmission and distribution, power generation, and natural gas distribution operations.
6. Duke Energy Corp. (NYSE:DUK)
Potential Upside: 11.45%
Number of Hedge Fund Holders: 55
Duke Energy Corp. (NYSE:DUK) is one of the 10 Best Energy Stocks Capitalizing on the Data Center Boom. On June 5, Duke Energy reported that it was selected by the Department of Energy (DOE) for a grant worth up to $61.8 million to refurbish and increase the reliability of coal-fired power plants in Kentucky and North Carolina.
If we look at the breakdown, the funding covers up to $33.4 million for East Bend Station in Kentucky and up to $28.4 million for Roxboro Station units 2 and 3 in North Carolina. Duke Energy6 said it will now enter negotiations to finalize funding amounts.
The company said the new grant brings DOE funding for its projects at nearly $96 million, including the previously disclosed $34 million grant for Belews Creek Steam Station in North Carolina.
Of the 24 analyst ratings compiled by CNN, half assigned a Buy rating to Duke Energy, while the remaining half assigned a Hold rating. The stock has an average price target of $138, an 11.45% upside from the current price of $123.82.
On June 2, BTIG reduced its price target on Duke Energy to $139 from $141 while maintaining a Buy rating on the stock, according to a report by TheFly. The analyst highlighted the improvement in the company’s financial execution under the relatively new management team, adding that it remains positive on its scale, geographic diversity, and conservative approach to large loads.
Duke Energy Corp. is an American energy holding company engaged in the distribution of natural gas and energy-related services.
5. Sempra (NYSE:SRE)
Upside Potential:14.45%
Number of Hedge Fund Holders: 51
Sempra (NYSE:SRE) is one of the 10 Best Energy Stocks Capitalizing on the Data Center Boom. On June 9, the company’s subsidiary, Sempra Infrastructure, said its Port Arthur Pipeline Louisiana Connector project has been placed in service.
The connector, with capital expenditures of less than $1 billion, includes 72 miles of 42-inch pipeline, a compressor station in Beauregard Parish, Louisiana, and associated above- and below-ground facilities.
The company said the connector provides strategic energy infrastructure in the region as it will support the safe, reliable transportation of 2 billion cubic feet per day (Bcfd) of U.S. natural gas to global markets by supplying gas to Port Arthur LNG Phase 1.
The project also interconnects with Sempra Infrastructure’s Gillis Hub Pipeline, a highly connected natural gas pipeline header system in Southwest Louisiana’s energy corridor.
In other news, Investing.com reported on June 9 that Sempra completed a $1 billion public offering of floating-rate notes due 2028. According to the report, the firm received approximately $998.5 million in proceeds after underwriting discounts, with estimated offering expenses of $1.7 million.
Sempra is an energy services holding company engaged in the development and operation of energy infrastructure, as well as the provision of electric and gas services.
4. Entergy Corporation (NYSE:ETR)
Upside Potential: 14.90%
Number of Hedge Fund Holders: 50
Entergy Corporation (NYSE:ETR) is one of the 10 Best Energy Stocks Capitalizing on the Data Center Boom. In an interview with CNBC on June 9, Entergy CEO Drew Marsh downplayed fears that the rise of AI data centers will increase electricity bills, highlighting its Fair Share Plus framework for large data center customers.
“The Fair Share part says that they are going to pay all of the incremental infrastructure costs during the life of their contract as needed to support them.” Marsh said.
Marsh explained that the plus part means these data center customers are also covering some of the fixed costs, such as overhead and storm costs, that our existing customers would already be paying.
The Entergy CEO highlighted that the said provisions are expected to generate around $7 billion in savings for existing customers over the 15 to 20-year life of the contracts.
On June 8, Wells Fargo analyst Shahriar Pourreza reiterated a Buy rating on Entergy with a price target of $131. Out of 27 analyst ratings compiled by CNN, 67% assigned a Buy rating to Entergy, while 30% assigned a Hold rating. The stock has an average price target of $126.50, around 15% upside from the current price of $109.66.
Entergy Corporation generates, transmits, and distributes electricity in the states of Arkansas, Louisiana, Mississippi, and Texas.
3. Xcel Energy Inc. (NASDAQ:XEL)
Potential Upside: 18.15%
Number of Hedge Fund Holders: 55
Xcel Energy Inc. (NASDAQ:XEL) is one of the 10 Best Energy Stocks Capitalizing on the Data Center Boom. On June 9, Truist Financial Analyst Richard Sunderland maintained a Buy rating on Xcel Energy, according to a report by TipRanks.
According to a report by Investing.com on June 8, KeyBanc reiterated its Overweight rating on Xcel Energy, maintaining a price target of $90.00 price, following a Colorado rate case settlement. The analyst highlighted that among the factors supporting the stock returning to a modest premium are its long-term earnings growth trajectory and the alleviation of several key overhangs.
For the first quarter of the year, Xcel Energy reported GAAP earnings of $556 million, or $0.89 per share, an increase from the $483 million, or $0.84 per share, in the same period last year. It also reported higher ongoing earnings of $567 million, or $0.91 per share, compared with $483 million or $0.84 per share in the same period a year ago.
Based on 22 analyst ratings compiled by CNN, 86% assigned a Buy rating to Xcel Energy, while 9% assigned a Hold rating. The stock has a median price target of $92, an 18.15% upside from the current price of $77.87.
Xcel Energy Inc. is an electricity and natural gas company operating in eight Western and Midwestern states. The company offers a comprehensive portfolio of energy-related products and services to millions of electricity and natural gas customers through its regulated operating companies.
2. GE Vernova Inc. (NYSE:GEV)
Upside Potential: 35.85%
Number of Hedge Fund Holders: 118
GE Vernova Inc. (NYSE:GEV) is one of the 10 Best Energy Stocks Capitalizing on the Data Center Boom. On June 9, Barclays cited GE Vernova as one of the companies best positioned for the 800VDC technology, according to a report by Investing.com.
While acknowledging that GE Vernova currently has limited white-space exposure, the analyst emphasized that it brings strong expertise in high-voltage equipment.
On the same day, GE Vernova’s Grid Software business launched GridOS for Transmission, a unified software solution that enables near real-time, coordinated transmission operations.
“By bringing together near real-time operations, capacity awareness, forecasting, and system stability into a single coordinated environment, GridOS for Transmission helps utilities shorten control room decision cycles, improve utilization of existing transmission capacity, and respond faster to rapidly changing grid conditions,” GE Vernova said.
The company said the operating model helps utilities reduce decision latency and operate closer to actual system limits. It also helps identify emerging stability risks earlier and respond more effectively during disturbances and peak-stress events.
Out of 40 analyst ratings compiled by CNN, 78% assigned a Buy rating to GE Vernova, while 20% assigned a Hold rating. The stock has an average price target of $1,250, a 35.85% upside from the current price of $920.15.
GE Vernova Inc. is a global energy company. It operates segments such as Power, Wind, and Electrification segments and is supported by its accelerator businesses.
1. Constellation Energy Corporation (NASDAQ:CEG)
Upside Potential: 51.20%
Number of Hedge Fund Holders: 79
Constellation Energy Corporation (NASDAQ:CEG) is one of the 10 Best Energy Stocks Capitalizing on the Data Center Boom. Of 22 analyst ratings compiled by CNN, 91% assigned a Buy rating to Constellation Energy, while 9% rated it Hold. The stock has a median price target of $380.50, a 51.20% upside from the current price of $251.654.
On June 9, Constellation Energy announced the completion of the spring refueling and maintenance outage at its Limerick Clean Energy Center, noting that it had invested $90 million in the effort.
In other news, the company announced on June 8 that its business unit Calpine had completed a 25-megawatt (MW) expansion project at The Geysers geothermal complex in Sonoma County, California. Constellation said the new capacity is enough to generate electricity to power over 25,000 homes annually.
Of the 25 MW expansion, the company explained that 18 MW will be directed to Clean Power Alliance (CPA), while the remaining 7 MW is being supplied to MCE to support Bay Area residents and businesses.
Constellation Energy Corporation is a producer of clean and reliable energy. With 55 gigawatts of capacity from nuclear, natural gas, oil, geothermal, hydro, wind, and solar facilities, its fleet can power the equivalent of 27 million homes.
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