AI Energy Crisis: 3 Stocks Set to Profit from Power Crunch

The rapid proliferation of AI data centers is creating an energy consumption challenge of historic proportions. Current projections indicate these facilities could require between 325,000 and 580,000 gigawatt hours annually by 2028, representing 6.7% to 12% of total U.S. electricity consumption. This surge in demand is exposing critical gaps in the nation’s power infrastructure, highlighting the disconnect between digital innovation and physical capacity.

While nuclear energy is often cited as a long-term solution, the decade-plus timeline for building new reactors makes it impractical for addressing the immediate crisis. This timing mismatch is forcing utilities and technology companies to seek faster alternatives, creating opportunities for companies that can provide scalable power solutions in the near term. The strain is already manifesting in rising electricity costs and increasing community resistance to new data center projects across the country.

Exxon Mobil (XOM) stands as a primary beneficiary of the AI energy crunch through its dominant position in natural gas production. With the ability to rapidly scale output, the company is positioned to meet the immediate power demands of data centers that require reliable, baseload electricity. The current political environment, including the Trump administration’s pro-fossil-fuel policies and recent reversals of gas phase-out plans, further favors natural gas as a quickly deployable solution.

Exxon’s extensive pipeline networks and liquified natural gas export capabilities provide flexibility to serve both domestic and international markets, ensuring the company can respond to sudden demand spikes. Financially robust with a market capitalization exceeding $476 billion, Exxon can invest heavily in expansion projects like new drilling sites in the Permian Basin while maintaining strong dividends that appeal to investors. Recent partnerships with technology firms for direct energy supply contracts signal Exxon’s strategic pivot to meet AI-specific energy needs, solidifying its role as a critical stopgap provider.

Brookfield Renewable Partners (BEP) offers a sustainable alternative through its substantial hydroelectric power portfolio. With 33,000 megawatts of installed capacity and a massive 231,700 megawatt development pipeline, the company can upgrade existing facilities to provide baseload power faster than new nuclear plants can be constructed. This speed advantage is critical given the urgency of the AI-driven demand spike.

The company’s recent $5 billion investment in Bloom Energy (BE) for fuel cell solutions demonstrates its commitment to catering to data center requirements with hybrid renewable systems. As community resistance grows against fossil fuel projects, Brookfield’s renewable status provides a significant competitive edge. With an $8.1 billion market capitalization and extensive experience managing large-scale renewable projects across North America, the company is well-positioned to capitalize on the energy crunch. Brookfield’s focus on long-term power purchase agreements with technology giants ensures steady revenue streams while helping utilities balance immediate needs with long-term sustainability goals.

Ormat Technologies (ORA) represents a less conventional but increasingly relevant player in addressing the AI energy crisis through geothermal energy advancement. The company plans to increase its capacity by 36% to 2.7 gigawatts by 2028, aligning perfectly with the projected growth in data center electricity consumption. Geothermal offers a clean, stable power source that can be scaled more rapidly than nuclear alternatives.

Ormat’s partnership with Sage Geosystems on enhanced geothermal technology accelerates deployment through advanced drilling techniques that tap into previously inaccessible reserves. Financially sound with a $6.7 billion market capitalization, a low beta of 0.74, and a 19-year dividend history, Ormat can sustain growth through reinvestment in research and new plant construction. Despite high upfront costs and site-specific limitations in regions like Nevada and Idaho, geothermal’s lower environmental impact and innovation potential make it attractive to policymakers and technology firms seeking green credentials. Recent contracts with data center operators in the western U.S. highlight Ormat’s growing relevance as a forward-looking alternative energy provider.

The AI energy crisis presents a complex challenge requiring both immediate solutions and consideration of long-term sustainability. While natural gas provides the quickest deployment option, renewable alternatives like hydroelectric and geothermal power offer cleaner pathways that align with environmental goals and public sentiment. Each of the three highlighted companies—Exxon Mobil, Brookfield Renewable Partners, and Ormat Technologies—brings distinct advantages to addressing different aspects of the energy crunch.

The projected electricity demand from AI data centers represents not just a challenge but a significant investment opportunity. As utilities and technology companies scramble to secure reliable power sources, these three companies are positioned to benefit from the infrastructure gap. Their ability to provide scalable solutions while navigating regulatory environments and community concerns will determine their success in capitalizing on this unprecedented energy transformation driven by artificial intelligence.