5 Best Energy Stocks Capitalizing on the Data Center Boom

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 (NYSE:ETR) generates, transmits, and distributes electricity in the states of Arkansas, Louisiana, Mississippi, and Texas.