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Is Talen Energy (TLN) a Good Energy Stock to Buy Amid the Data Center Boom?

Talen Energy Corporation (NASDAQ:TLN) is a leading independent power producer and energy infrastructure company with a portfolio that consists of 12 generation locations that are collectively capable of producing approximately 10.7 GW of power.

An aerial view of a nuclear plant, its domes casting a unique shadow.

Talen Energy Corporation (NASDAQ:TLN) made headlines last year after it announced the sale of a 960 MW data center campus to cloud service provider AWS, a subsidiary of Amazon, for $650 million. The facility was meant to be powered by Talen’s Susquehanna Nuclear power plant in a so-called co-located arrangement, in which data centers are located close to the power stations that feed them, potentially eliminating the overly long wait times associated with connecting to the broader electrical grid.

However, the Federal Energy Regulatory Commission voiced concerns about how the campus might affect power reliability and costs for the general public and ruled to cap the amount of power to Amazon’s data center at 300 MW. Talen Energy Corporation (NASDAQ:TLN) is currently appealing the regulator’s decision and expects a court hearing on the case in the coming weeks. In the meantime, the company is considering alternative data center deals, including ones that connect the centers to the grid as part of traditional commercial power contracts.

Talen Energy Corporation (NASDAQ:TLN) announced mixed results for its Q1 2025 earlier this month, beating forecasts in adjusted earnings but falling short in revenue. That said, the company reported an adjusted free cash flow of $87 million and repurchased shares worth $83 million during the quarter. Since the start of 2024, Talen has repurchased approximately 23% of its outstanding shares for a total of approximately $2 billion, with $995 million still remaining under its share repurchase program through year-end 2026.

While we acknowledge the potential of TLN 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 TLN and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Cheap Energy Stocks to Buy Now and 10 Most Undervalued Energy Stocks to Buy According to Hedge Funds.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

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What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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