Why Smart Investors Are Eyeing Utility Stocks in the AI Era
When you think about the AI revolution, utility stocks might not be the first thing that comes to mind. But maybe they should be. Entergy (ETR), a major U.S. utility, just landed a $10 billion deal with Meta Platforms (META) to power what will be Meta’s largest AI data center in northeast Louisiana. It’s a massive win for Entergy, but is it also a turning point for how we think about the future of energy?
The Big Question: Can Natural Gas Keep Up with AI?
Entergy plans to build three new natural gas power plants to generate 2,200 megawatts of electricity over 15 years for Meta’s new data center. It’s a bold move that highlights an uncomfortable truth: the AI boom isn’t green—yet. Natural gas, not renewable energy, will power the future of AI, at least in the short term. Some might see this as a step backward, but others argue it’s the only way to meet the explosive demand.
Energy Stocks Are the New Tech Stocks
Entergy’s stock has surged 19% since September, part of a stunning 50% rise this year. Utility stocks like Entergy, once seen as stable but dull investments, are suddenly hot. Why? Because data centers need a lot of power, and AI is driving a construction boom. This isn’t just good news for Entergy. Constellation Energy (CEG), Vistra (VST), and Talen Energy (TLN) are all riding the AI wave, posting strong earnings and climbing stock prices.
The Nuclear Comeback: Real or Hype?
Meta isn’t just betting on natural gas. It recently put out a call for nuclear developers to propose up to four gigawatts of new capacity by the early 2030s. The catch? No commercial small modular reactors (SMRs) are operating yet. Companies like Amazon and Alphabet are investing in the technology, but it’s a gamble. If nuclear doesn’t deliver, what happens to all these ambitious data center projects?
The Energy Dilemma
The AI revolution is happening now, but the green energy revolution isn’t ready yet. That leaves companies like Entergy in the spotlight—and under scrutiny. Are they pioneers of a new energy future, or just extending the life of fossil fuels? One thing’s for sure: utility stocks are no longer boring. They’re powering the next chapter of the tech story.
Entergy isn’t just keeping the lights on—it’s fueling the future. Whether that future is bright or controversial depends on where you stand.
Sponsored by: $MLRT – MetAlert, Inc
