AES Corp. (AES +0.07%) is a U.S. utility company that serves residential customers in Ohio and Indiana, with long-term plans to expand into fulfilling energy needs for data centers. The company's 11.1-gigawatt pipeline, which includes 4 gigawatts that are allocated for hyperscaler customers, ensures AES can serve residential customers and tech giants.
For a utility company, that sounds like a strong business model and a potential to invest in the growth of artificial intelligence (AI) in this economy. However, AES isn't the best way to invest in AI as it relates to energy usage. Applied Digital (APLD -0.71%) looks like the better pick, and the fact that its share price has almost tripled over the past year, while AES stock is only up by 14% during the same time frame, provides some proof of that.
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Applied Digital doesn't just have power
Admittedly, AES has a vast multi-gigawatt pipeline, but Applied Digital has gigawatts and AI data centers. The fact that Applied Digital owns both of these assets improves its long-term outlook in comparison to AES. It also explains why the companies have different growth trajectories, despite both providing electricity to tech companies.
NYSE: AES
Key Data Points
For instance, AES delivered 2% year-over-year revenue growth in Q3 2025, while Applied Digital boosted its sales by 84% year over year during the same stretch. One of these companies is mature, while the other is entering the early stages of hypergrowth.
Applied Digital continues to sign lucrative deals with its energy and AI data centers. For instance, it secured a 15-year contract with CoreWeave that will result in approximately $11 billion in revenue. The deal allocates 400 megawatts to CoreWeave, highlighting the potential of this growth stock. While AES has more megawatts, Applied Digital has the potential to earn far more money per megawatt.
Applied Digital is building its multi-gigawatt pipeline
Applied Digital also has a multi-gigawatt pipeline, which will give it more energy to support multiple deals like the 15-year CoreWeave contract.
The AI data center builder also cited "active and increasing hyperscaler interest" and "unprecedented levels" of demand for advanced infrastructure in its Q1 FY26 press release. This backdrop gives Applied Digital the flexibility to build more data centers and invest more capital, knowing that strong buyer demand is compounding.
NASDAQ: APLD
Key Data Points
Raising capital is the key objective for building AI data centers quicker, which can lead to long-term deals faster. This is a critical window for AI data center builders, where the fastest companies will make the greatest fortunes for AI stock investors.
Applied Digital has issued $2.35 billion of senior secured notes to strengthen its balance sheet and also tapped into a $787.5 million draw from Macquarie Asset Management.
"With Macquarie's ongoing support and the anticipated completion of our senior secured notes offering, we believe we're positioned to strengthen our balance sheet, accelerate development, and expand our AI Factory platform," Applied Digital CEO Wes Cummins told investors in mid-November 2025.
AES primarily addresses energy concerns, while Applied Digital offers energy and AI data centers. That's a big difference, which explains why investors are bullish on Applied Digital and continue to buy the stock despite the share price's stellar growth in 2025.
