President Trump recently announced an executive order to initiate the Genesis Mission, a federal initiative under the Department of Energy, aimed at accelerating the development of artificial intelligence (AI) for various purposes, including scientific research and national security.
Essentially, AI is a race that America doesn't want to lose. Of course, AI consumes a significant amount of energy, to the point that data center power consumption has become an increasingly contentious issue.
U.S. energy dominance is a key pillar of the Genesis Mission, which aims to power AI, modernize the power grid, and provide Americans with affordable and reliable energy.
Here are five energy stocks that could see tremendous growth opportunities as these developments unfold on America's path to becoming the world's AI leader over the coming years.
Image source: Getty Images.
1. Constellation Energy
One of America's largest clean energy producers, Constellation Energy (CEG 0.66%), has a capacity of over 32,400 megawatts. It powers approximately 20 million homes and businesses. It's also the country's largest nuclear power plant operator. The Genesis Mission announcement specifically referenced nuclear energy, which is clean and highly efficient, despite its tainted reputation from past incidents.
NASDAQ: CEG
Key Data Points
The Trump Administration has already supported Constellation Energy by supplying a $1 billion loan from the Department of Energy to restart its shuttered Three Mile Island reactor for a power purchase agreement with Microsoft. It will power the tech giant's data centers. It signals what could be the start of a revival for domestic nuclear energy generation.
2. NextEra Energy
An emphasis on U.S. energy independence bodes well for NextEra Energy (NEE +0.44%). It operates America's largest electric utility, Florida Power & Light. The company is also a global leader in renewable power generation and storage. It boasts a total capacity of 33,410 megawatts across nuclear, natural gas, wind, solar, and battery storage.
The company is investing $75 billion in infrastructure for power generation and transmission between now and 2028 to meet high demand as data centers continue to put pressure on the electric grid. NextEra Energy has already enjoyed decades of steady growth, evidenced by 30 consecutive annual dividend increases. An emphasis on domestic energy should help continue NextEra's success.
3. Dominion Energy
The proximity to the federal government, combined with the presence of deep-sea cables, makes Northern Virginia a hotspot for data centers. Dominion Energy (D 0.58%) is one of the country's largest producers of offshore wind and solar energy, and operates a utility business that delivers power throughout Virginia, North Carolina, and South Carolina.
NYSE: D
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Dominion Energy is reportedly in contract talks with data center companies on agreements totaling 47,000 megawatts of power. All these opportunities will likely create an enormous project pipeline for growth as the company invests in expanding its capacity, and makes Dominion Energy a no-brainer as a winner in the domestic energy push moving forward.
4. EQT Corporation
Natural gas is cleaner than coal, making it a likely benefactor as domestic energy use rises. EQT Corporation (EQT +4.11%) is one of America's leading natural gas company. It primarily operates in the Marcellus Formation, a gas-rich region located in the Appalachian Basin. EQT Corporation's vertically integrated business spans exploration and midstream activities, helping keep its costs down.
According to the U.S. Energy Information Administration, demand for U.S. natural gas production and output will set record highs. That trend will continue next year due to surging demand for exports. EQT Corporation targets a long-term break-even price (cash flow) for natural gas of just $2.00/MMBtu, positioning it as a cash cow as the American natural gas industry continues to thrive.
5. GE Vernova
Once part of a massive conglomerate, GE Vernova (GEV +0.07%) now stands independently as an energy giant. The company specializes in power generation equipment across wind, gas, and nuclear power generation, as well as the services to maintain it. Collectively, GE Vernova's customer base generates roughly a quarter of the world's electricity today.
NYSE: GEV
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The Genesis Mission outlines the need to modernize America's power grid to help keep electricity affordable as the country adapts to the growing energy demands of AI. GE Vernova has a dedicated business unit for electrification, which, along with its expertise in turbines and reactors, should create numerous opportunities over the next decade and beyond.
