In this article, we will take a look at the 5 Best Electric Utility Stocks to Buy for the Data Center Power Surge. For a deeper discussion and analysis, please refer to the 12 Best Electric Utility Stocks to Buy for the Data Center Power Surge.
5. American Electric Power Company, Inc. (NASDAQ:AEP)
Number of Hedge Fund Holders: 60
American Electric Power Company, Inc. (NASDAQ:AEP) is one of the nation’s largest electricity producers with approximately 29,000 megawatts of diverse generating capacity.
American Electric Power Company, Inc. (NASDAQ:AEP) reported strong results for its Q1 2026 on May 5. The company posted an adjusted profit of $1.64 per share, up from $1.54 in the same period last year, and beat estimates by $0.07. The utility also grew its revenue by over 10% YoY to $6 billion and exceeded forecasts by $251 million.
AEP contracted an additional 7 GW of load in the first quarter, and the company’s incremental load is expected to grow to 63 GW by 2030, up from the 56 GW it shared previously. Nearly 90% of this expected incremental contracted load is from data centers, including hyperscalers. As a result, the utility raised its five-year capital investment plan to $78 billion, up from the prior $72 billion.
American Electric Power Company, Inc. (NASDAQ:AEP) reaffirmed its full-year 2026 operating earnings guidance of $6.15 to $6.45 per share. The company also reiterated its premium operating earnings growth rate target of 7% to 9% for 2026 through 2030. Moreover, given its boosted capital investment plan, AEP increased its expected long-term operating earnings CAGR to greater than 9%.
4. NRG Energy, Inc. (NYSE:NRG)
Number of Hedge Fund Holders: 63
NRG Energy, Inc. (NYSE:NRG) delivers innovative natural gas, electricity, and smart home solutions to customers large and small across North America.
NRG Energy, Inc. (NYSE:NRG) reported mixed results for its Q1 2026 on May 6. The company’s adjusted profit of $1.48 per share fell behind estimates by $0.25 due to the milder weather in Texas and increased costs. The utility’s operating costs surged by 33.4% to almost $10 billion, while its interest expenses soared by 75% YoY to $285 million, driven by the completed acquisition of power generation assets LS Power. However, NRG’s revenue for the quarter jumped by over 19% YoY to $10.26 billion, beating expectations by $1.62 billion.
That said, NRG Energy, Inc. (NYSE:NRG) reaffirmed its guidance for full-year 2026, saying that the business remains on track. Moreover, the utility reiterated its commitment to deliver at least 14% adjusted EPS and free cash flow per share growth over the next 5 years, before any contribution from Large Load or incremental development.
NRG Energy, Inc. (NYSE:NRG) was also recently included in our list of the 10 Best Electrical Infrastructure Stocks to Buy According to Hedge Funds.
3. NextEra Energy, Inc. (NYSE:NEE)
Number of Hedge Fund Holders: 72
With a market cap of over $193 billion as of the writing of this article, NextEra Energy, Inc. (NYSE:NEE) is the most valuable utility company in the world. The company boasts a diverse mix of energy sources, including natural gas, nuclear, renewable energy, and battery storage.
On May 4, Evercore ISI raised its price target on NextEra Energy, Inc. (NYSE:NEE) from $97 to $107, while keeping an ‘Outperform’ rating on the shares. The target boost reflects an upside potential of over 15% from the current price levels.
Similarly, earlier on April 27, BMO Capital also bumped up its price target on NextEra Energy, Inc. (NYSE:NEE) by $5, while maintaining its ‘Outperform’ rating on the shares (read more details here).
NextEra Energy, Inc. (NYSE:NEE) beat earnings estimates in its Q1 2026 report on April 23, with its profit of $2.18 billion growing by almost 162% compared to the same period last year. Notably, the company’s renewables and storage unit had a record quarter, adding 4 GW of new renewable and storage projects to its backlog. Nextera’s total backlog now stands at around 33 GW.
NextEra Energy, Inc. (NYSE:NEE) reaffirmed its adjusted EPS target of $3.92 to $4.02 per share for full-year 2026, up from $3.71 per share last year. The utility then further expects to grow its adjusted EPS at a CAGR of over 8% through 2032, and then the same from 2032 through 2035, all off the 2025 base.
2. Constellation Energy Corporation (NASDAQ:CEG)
Number of Hedge Fund Holders: 76
Constellation Energy Corporation (NASDAQ:CEG) is the largest provider of clean, low-carbon energy in the United States. The company also operates the largest fleet of nuclear facilities in the country.
On May 4, TD Cowen trimmed its price target on Constellation Energy Corporation (NASDAQ:CEG) from $390 to $381 but kept its ‘Buy’ rating on the shares. The lowered target still indicates an upside of over 22% from the current levels. The analyst expects Constellation to post a “relatively quiet quarter” in its upcoming Q1 report on May 11, with earnings growing modestly compared to last year, due to capacity prices.
Similarly, earlier on April 29, Scotiabank analyst Andrew Weisel also reduced the firm’s price target on Constellation Energy Corporation (NASDAQ:CEG) by $40, but maintained an ‘Outperform’ rating on the shares (read more details here).
Constellation Energy Corporation (NASDAQ:CEG) is targeting adjusted earnings of $11 to $12 per share for FY 2026. The company expects a base earnings per share growth of 20% and above from 2026 to 2029.
1. Vistra Corp. (NYSE:VST)
Number of Hedge Fund Holders: 102
Vistra Corp. (NYSE:VST) is one of the largest competitive power generators in the United States. The company operates a power generation fleet of natural gas, nuclear, coal, solar, and battery energy storage facilities in the country.
Vistra Corp. (NYSE:VST) grew its quarterly dividend by 0.4% to $0.229 per share on May 1. The dividend is payable on June 30 to shareholders as of the June 22 record. The stock currently has an annual dividend yield of 0.61%.
Vistra Corp. (NYSE:VST) delivered a revenue growth of over 43% YoY to $5.64 billion in its Q1 2026 report on May 7. The company also reported $1.494 billion in adjusted EBITDA, driven by rising power demand and prices. The utility’s Texas unit posted an adjusted core profit of $586 million, up more than 19% from a year earlier, while its East segment also surged by 55.8% compared to last year.
Vistra Corp. (NYSE:VST) reaffirmed its outlook for 2026 adjusted core profit from continuing operations to be in the range of $6.8 billion to $7.6 billion. The company is also targeting to generate more than $10 billion of cash through year-end 2027.
While we acknowledge the potential of VST 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 VST and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 10 Best Electrical Infrastructure Stocks to Buy According to Hedge Funds and 10 Best Fortune 500 Stocks to Buy According to Analysts
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