In this article, we will discuss: 13 Best Electrical Infrastructure Stocks to Invest In.
The primary focus of dozens of electric utility businesses is producing and delivering electricity to consumers. These businesses also work together to maintain the infrastructure that supports the nation’s electrical grid, ensuring its reliability.
Artificial intelligence has the potential to revolutionize the global energy industry. By 2030, data centers’ electricity usage is predicted to more than quadruple to approximately 945 TWh, surpassing Japan’s present consumption. According to the IEA’s Energy and AI report, AI-powered data centers alone could quadruple their electricity consumption by the end of the decade. Data centers are expected to surpass power consumption by conventional heavy areas like steel and cement in the United States, accounting for about half of the rise in the nation’s electricity demand. Data centers will reverse years of stagnation by driving over 20% of demand growth in industrialized economies worldwide.
IEA Executive Director Fatih Birol stated:
“Global electricity demand from data centres is set to more than double over the next five years, consuming as much electricity by 2030 as the whole of Japan does today. The effects will be particularly strong in some countries. For example, in the United States, data centres are on course to account for almost half of the growth in electricity demand; in Japan, more than half; and in Malaysia, as much as one-fifth.”
A variety of energy sources will be employed to fulfill the growing demand, with natural gas and renewables likely to take the lead. AI is both a threat and a defensive weapon, and at the same time, cyberattacks on utilities have increased in the last four years. The report mentioned above encourages countries to invest in new electricity generation and grid capacity, while also improving efficiency and collaboration among governments, the technology industry, and energy suppliers.
With that said, here are the 13 Best Electrical Infrastructure Stocks to Invest In.
High-voltage power lines. Electricity distribution station. high voltage electric transmission tower. Distribution electric substation with power lines and transformers.
Methodology:
We sifted through the Electrical Infrastructure ETFs and online rankings to form an initial list of the 20 Best Electrical Infrastructure Stocks. From the resultant dataset, we chose 13 stocks with the highest number of hedge fund investors, using Insider Monkey’s database of 1000 hedge funds in Q1 2025. We have used the stock’s revenue growth year-over-year as a tie-breaker in case two or more stocks have the same number of hedge funds invested.
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. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
13. Edison International (NYSE:EIX)
Number of Hedge Fund Holders: 44
A Wildfire Recovery Compensation Program for Eaton Fire victims will be launched by Edison International (NYSE:EIX)’s company, Southern California Edison (SCE), and is anticipated to start this fall.
The voluntary program covers damages like structural damage, business interruption, smoke, ash, injuries, and fatalities, and seeks to provide prompt, equitable compensation to affected persons and businesses. Nationally renowned compensation fund administration specialists Kenneth Feinberg and Camille Biros are consulting on the initiative’s design.
Pedro J. Pizarro, president of SCE and CEO of Edison International (NYSE:EIX), pointed out the significance of offering financial assistance prior to the conclusion of the fire investigation so that impacted communities can concentrate on reconstruction. The program will continue to run until 2026 and will not charge administrative, legal, or application expenses. Feinberg and Biros, recognized for their work on the September 11th Victim Compensation Fund, will guide program structure but not claim evaluations. Edison International (NYSE:EIX)’s SCE continues to invest in grid resilience, with 63 miles of undergrounding in Altadena. It is one of the Best Electrical Equipment Stocks.
12. Consolidated Edison, Inc. (NYSE:ED)
Number of Hedge Fund Holders: 46
Sophie Karp, an analyst at KeyBanc, maintained her Overweight rating but reduced the price target for Consolidated Edison, Inc. (NYSE:ED) from $90 to $88.
The firm admitted that earlier in the year, when wider narratives about power demand were under pressure, the company’s low-risk, “wires-only” utility profile supported the stock. However, KeyBanc now expects a reversal of that trade, which might result in margin compression, as investor risk appetite has improved.
KeyBanc believes that the ongoing CECONY rate cases, where bill pressure is a significant concern, will continue to put pressure on valuation, even though the stock is selling at a discount to its peers. The firm also stated that the company’s future upside is expected to be constrained by a challenging political environment in New York and limited growth opportunities. Despite being essentially solid, these trends imply that Consolidated Edison, Inc. (NYSE:ED) may see ongoing challenges shortly. It is among the Best Electrical Equipment Stocks
11. Exelon Corporation (NASDAQ:EXC)
Number of Hedge Fund Holders: 48
Exelon Corporation (NASDAQ:EXC)’s ComEd announced the completion of a $96 million upgrade to its Itasca substation on July 15, 2025. This significant infrastructure investment strives to strengthen northern Illinois’s economy and increase reliability. The project, which was started in 2022, adds huge power transformers and modern gas-insulated switchgear technology to the bulk 345 kV transmission line, increasing its capacity. The upgrade is a component of a larger regional investment of $1 billion that is linked to the Western O’Hare area’s growing power demands.
Gil Quiniones, president and CEO of Exelon Corporation (NASDAQ:EXC)’s ComEd, stressed the importance of these modifications in light of growing electrification and extreme weather. Ruiz Construction Systems led the project, which was developed in collaboration with the Village of Itasca to reduce the impact on the neighborhood. Illinois State Rep. Jennifer Sanalitro underlined the grid’s economic relevance, while Choose DuPage CEO Greg Bedalov highlighted its role in attracting firms.
ComEd, a division of Exelon Corporation (NASDAQ:EXC), provides services to 4 million customers in northern Illinois. It is ranked eleventh on our list of the Best Electrical Equipment Stocks.
