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.
Our 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.
10. Emcor Group, Inc. (NYSE:EME)
Number of Hedge Fund Holders: 49
Associated Builders and Contractors (ABC) presented Emcor Group, Inc. (NYSE:EME)’s subsidiary, EMCOR Services New England Mechanical (NEMSI), with the national Pyramid Award on March 10, 2025, in recognition of its contributions to the Hartford 21 project in Hartford, Connecticut.
The award was given at the ABC Convention in Las Vegas to recognize NEMSI’s innovative construction of a central energy plant for the 34-story residential tower. The project is expected to offset about 2,000 metric tons of CO₂ and provide a 7-8 year payback through energy savings, utilizing a design/build approach spanning mechanical, electrical, plumbing, and automation systems.
Emcor Group, Inc. (NYSE:EME)’s NEMSI also got a local Excellence in Construction Award and was awarded a 2025 ABC Top Performer based on work hours for its achievements in safety, quality, and project execution. ABC Board Chair David Pugh and NEMSI President & CEO Russ Stevens hailed the project as an example of sustainability and teamwork in the construction market. It is among the Best Electrical Equipment Stocks.
9. First Solar, Inc. (NASDAQ:FSLR)
Number of Hedge Fund Holders: 52
UbiQD announced a multi-year exclusive agreement to deliver its unique quantum dot (QD) nanotechnology to First Solar, Inc. (NASDAQ:FSLR) on July 9, 2025. The partnership facilitates the incorporation of QD materials into First Solar, Inc. (NASDAQ:FSLR)’s thin-film bifacial photovoltaic modules and is the first high-volume QD supply agreement outside the display industry. Furthermore, the businesses extended their research and development partnership with the goal of maximizing the effectiveness of solar panels for utility-scale applications.
According to UbiQD, manufacturing will increase to more than 100 metric tons per year. CEO Hunter McDaniel described the agreement as an important turning point for the US quantum dot business.
Markus Gloeckler, CTO of First Solar, Inc. (NASDAQ:FSLR), noted how QD might significantly improve the efficiency of bifacial modules. The collaboration follows UbiQD’s $20 million Series B fundraising in April 2025, which funds the building of a sizable QD manufacturing plant in New Mexico, promoting material efficiency and indigenous solar innovation.
8. American Electric Power Company, Inc. (NASDAQ:AEP)
Number of Hedge Fund Holders: 55
Revenue growth (YoY): 3.89%
American Electric Power Company, Inc. (NASDAQ:AEP)’s unit AEP Ohio’s plan to guarantee data centers pay for the infrastructure needed to satisfy their high energy demands was accepted by the Public Utilities Commission of Ohio (PUCO) on July 9, 2025. Large data center clients are required under the agreement to pay for a minimum of 85% of the energy they have contracted for, regardless of lower usage. Smaller facilities are subject to a sliding scale, and exit fees and financial viability proof are necessary. The regulations are in effect for 12 years, with a 4-year ramp-up period. The plan also lifts the previous restriction on new Central Ohio data center agreements.
American Electric Power Company, Inc. (NASDAQ:AEP)’s AEP Ohio, which serves 1.5 million consumers in 61 counties, submitted the plan in May 2024, with the cooperation of PUCO personnel, the Ohio Consumers’ Counsel, and the Ohio Energy Group.
President Marc Reitter stressed how crucial it is to coordinate infrastructure planning with data center expansion. The decision benefits Ohio’s technology sector while protecting other ratepayers from bearing the infrastructure burden.
7. The Southern Company (NYSE:SO)
Number of Hedge Fund Holders: 55
Revenue growth (YoY): 5.83%
Southern Company Gas, a wholly owned subsidiary of Atlanta-based The Southern Company (NYSE:SO), announced new renewable natural gas (RNG) acquisitions by its Chattanooga Gas and Virginia Natural Gas subsidiaries on June 25, 2025.
According to estimates, the transactions will reduce lifecycle emissions by 18,978 metric tons of CO₂e, which is equivalent to the annual carbon stored by 19,036 acres of U.S. forest. The RNG is sourced from facilities in Texas and expands upon the initial RNG purchases made by the subsidiaries in 2023.
The agreements are consistent with supportive state laws such as the Virginia Energy Innovation Act and the Tennessee Natural Gas Innovation Act, which promote cleaner fuels. Methane from waste sources such as landfills and agriculture is captured to create RNG, which helps reduce greenhouse gas emissions. The gas integrates effortlessly into the current infrastructure.
Bryan Batson, EVP of The Southern Company (NYSE:SO)’s Southern Company Gas, highlighted the company’s objective of achieving net-zero direct emissions by 2050. The company’s clean energy efforts are being further expanded with a new RNG project in collaboration with Hampton Roads Sanitation District. It is one of the Best Electrical Equipment Stocks.
6. Duke Energy Corporation (NYSE:DUK)
Number of Hedge Fund Holders: 56
On June 17, 2025, Duke Energy Indiana, a subsidiary of Duke Energy Corporation (NYSE:DUK), disclosed a settlement with Reliable Energy Inc., which represents major coal producers, in which the parties agreed to conduct an engineering study on the feasibility of potential third-party buyers continuing to operate the Cayuga coal units. This comes after the firm’s Duke Energy proposed adding two more natural gas units to its Cayuga Generating Station, which is scheduled to start up in 2029 and 2030.
The agreement guarantees that the coal units will not be decommissioned without considering sale possibilities, which is in line with Indiana Governor Mike Braun’s executive directives on maintaining coal generation. Duke Energy Corporation (NYSE:DUK)’s Duke Energy Indiana will release a request for proposals once feasibility has been established.
The new gas units’ budget and schedule are unaffected by the settlement. The state’s importance to energy resilience and dependability was made clear by Reliable Energy President Savannah Kerstiens, while President Stan Pinegar stressed the significance of increasing efficient power capacity.
5. MasTec Inc. (NYSE:MTZ)
Number of Hedge Fund Holders: 57
Jefferies maintained its Buy recommendation on MasTec Inc. (NYSE:MTZ) on June 27 but raised its price objective from $193 to $213. It is among the Best Electrical Equipment Stocks.
The company acknowledged MasTec Inc. (NYSE:MTZ)’s “solid” Q2 momentum in a research note to investors, pointing to the company’s expanding backlog, margin performance, and strength across its end markets. Its stock is regarded by Jefferies as one of the most attractive in the entire coverage universe.
The updated goal reflects increasing assurance about MasTec Inc. (NYSE:MTZ)’s ability to meet demand and execute. A solid project pipeline is being driven by the company’s substantial infrastructure investment. Analysts highlight the company’s capacity to turn backlog into profitable expansion, supported by careful cost control and advantageous industry conditions.
According to Jefferies, MasTec Inc. (NYSE:MTZ)’s position as a major infrastructure provider is strengthened by its expanding exposure in energy, power delivery, and communications, as well as its improved profits.
4. Entergy Corporation (NYSE:ETR)
Number of Hedge Fund Holders: 64
At Entergy Corporation (NYSE:ETR)’s 76th annual meeting, CEO Drew Marsh stressed the company’s role in driving economic growth and promoting renewable energy in the Gulf South.
The business signed electric service contracts with hyperscale data centers in Louisiana and Mississippi and raised its solar capacity by more than 700 MW. Furthermore, Entergy Corporation (NYSE:ETR) reported a $153 million economic effect from volunteerism and community projects. A 2-for-1 stock split and a 6% dividend increase accompanied earnings growth in the upper half of the projection range. The business intends to address growing customer-driven energy demand while improving grid resiliency.
Entergy Corporation (NYSE:ETR) serves three million clients in Arkansas, Louisiana, Mississippi, and Texas. It increased stakeholder value in 2024 by expanding clean energy, strengthening restoration response, and implementing corporate responsibility initiatives. The NFL Foundation and other partners established the Impact 59 project, which awarded $3.5 million in local awards.
Entergy Corporation (NYSE:ETR) maintained its financial flexibility while making progress on regulatory objectives and credit criteria. All management suggestions and board nominees were accepted by shareholders. It is ranked fourth on our list of the Best Electrical Equipment Stocks.
3. NextEra Energy, Inc. (NYSE:NEE)
Number of Hedge Fund Holders: 75
Fortune’s 2025 World’s Most Admired Companies list features NextEra Energy, Inc. (NYSE:NEE) at the top of the electric and gas utilities industry, marking the company’s 17th consecutive top spot in 19 years. The company’s excellent performance in innovation, management caliber, and long-term investment value is reflected in the rating.
Florida Power & Light is the major electric utility owned by NextEra Energy, Inc. (NYSE:NEE), which has its headquarters in Juno Beach, Florida. It is the leader in renewable energy generation in the United States. The firm intends to invest an extra $120 billion through 2029, having already spent over $150 billion on energy infrastructure in the past ten years. It added 8.7 GW of storage and renewable energy in 2024. Its energy mix includes nuclear, gas, and renewables, keeping electricity rates more than 30% lower than the national average.
Furthermore, NextEra Energy, Inc. (NYSE:NEE) saved customers an average of $24 per month and prevented 2.7 million outages in 2024 through grid innovation. It employs more than 16,000 people, operates in 49 states, and over the last ten years, it has contributed $1.6 billion in land payments and $8 billion in property taxes to rural America. It is among the Best Electrical Equipment Stocks.
2. PG&E Corporation (NYSE:PCG)
Number of Hedge Fund Holders: 76
Pacific Gas and Electric Company, a subsidiary of PG&E Corporation (NYSE:PCG), has announced a $500,000 charitable engagement with Habitat for Humanity California as part of a two-year effort called Connecting Hometowns. The funds will go toward 10 affordable housing and restoration projects in Northern and Central California, with the company’s staff providing assistance on-site.
The alliance was started during National Homeownership Month to solve the housing crisis in California, where just 16% of residents could afford a median-priced home, and the median home price in 2024 surpassed $800,000. PG&E Corporation (NYSE:PCG) has given five $50,000 grants to Habitat affiliates in its service areas, supporting initiatives in Firebaugh, Grass Valley, San Jose, San Francisco, and Sebastopol. The program aims to create more affordable housing, improve family health outcomes, and promote generational wealth by combining financial investment with community service.
Carla Peterman, executive vice president of PG&E Corporation (NYSE:PCG), stressed the value of promoting neighborhood stability. Debbie Arakel, executive director of Habitat California, pointed out that this is the biggest program of its sort in the state, with direct volunteer participation and strategic funding. It is one of the Best Electrical Equipment Stocks.
1. Constellation Energy Corporation (NASDAQ:CEG)
Number of Hedge Fund Holders: 83
The New York State Public Service Commission has approved the acquisition of Calpine Corporation by Constellation Energy Corporation (NASDAQ:CEG).
The agreement is expected to be finalized in Q4 2025, subject to clearances from the Department of Justice and the Federal Energy Regulatory Commission. This significant regulatory milestone comes after the Public Utilities Commission of Texas already approved the deal.
The deal will create a coast-to-coast power platform by combining Calpine’s portfolio of low-emission natural gas and geothermal assets with the Constellation Energy Corporation (NASDAQ:CEG) fleet of nuclear reactors that emit no emissions. Joe Dominguez, CEO of Constellation Energy Corporation (NASDAQ:CEG), noted the strategic significance of the agreement in improving grid sustainability and stability while meeting increasing power demands, especially those from artificial intelligence.
Constellation Energy Corporation (NASDAQ:CEG), which has its headquarters in Baltimore, is the biggest maker of emissions-free energy in the United States and a significant energy provider to residential, commercial, and public sector customers, including 75% of Fortune 100 businesses. The firm’s objectives of operational excellence and national energy leadership are in line with the merger.
While we acknowledge the potential of CEG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CEG and that has 100x upside potential, check out our report about this cheapest AI stock.
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