The era of AI-powered electricity demand: How energy stocks can become the most certain growth assets

Driven by explosive global AI computing power growth, the investment logic for energy stocks has been completely transformed. Over the past two years, the new energy industry has experienced overcapacity and price wars, but by 2026, the energy stock market has entered a new phase—evolving from a simple environmental issue to a dual driver of “AI infrastructure core” and “energy security.” This article analyzes why energy stocks have become the most focused structural opportunity for global investors.

The AI Era Has Changed the Investment Logic of Energy Stocks

For a long time, investors’ understanding of new energy stocks remained within the framework of “policy subsidies + economies of scale”—achieving profit growth through government support and capacity expansion. But this logic is being overturned by the “electricity demand” of the AI era.

Data centers are now the world’s most power-consuming industries. According to the latest forecasts from the International Energy Agency (IEA) and Goldman Sachs, global data center electricity consumption will surge from 460 TWh in 2022 to about 1,050 TWh in 2026, with AI-related parts contributing over 50%. Training a large AI model consumes thousands of MWh, equivalent to the annual electricity use of tens of thousands of households.

This shift is not about demand volume but about a change in demand characteristics—from controllable and cyclical to rigid, continuous, and non-negotiable 24/7 power needs.

Explosive Growth of Data Centers: Why Do Energy Stocks Face a Structural Opportunity?

This data clearly reveals the real opportunity for energy stocks: AI-driven electricity demand is now a rigid requirement that cannot be met by intermittent energy sources.

Traditional wind and solar power have intermittency issues, unable to provide stable 24/7 power for data centers. This directly implies:

1. Revaluation of Nuclear Assets — Power companies with nuclear and natural gas assets are gaining market premiums.

2. Grid Upgrades Become a Bottleneck — Many think power generation is the key, but in reality, “easy to generate, hard to transmit” is the current bottleneck. The lead time for high-voltage transformers and switchgear remains 2-3 years in 2026, despite billions of dollars invested by giants like Hitachi Energy still facing supply shortages.

3. Energy Stocks as “Shovel Stocks” — In a power shortage environment, companies providing power equipment, infrastructure, and stable power sources become the most certain beneficiaries.

Forecasts show that data centers will account for over 8% of total US electricity consumption in 2026, up from 4% in 2023, directly boosting power companies’ revenue growth rate from 1% to 4-6%. For investors, this is a cycle of prosperity that energy stocks have not experienced in the past decade.

Nuclear Power and Grid Upgrades: The Two Most Certain Growth Engines for Energy Stocks

Nuclear Power: A New Choice for Tech Giants

Why are Microsoft, Amazon, and Google heavily investing in nuclear power in 2025-2026? Simply put: AI data centers require 24/7 uninterrupted power, which only nuclear can provide.

Microsoft has signed a fusion agreement with Helion Energy; Amazon is investing in X-energy and plans to deploy 12 small modular reactors (SMRs) with a total capacity of 960 MW; Google commits to tripling its nuclear capacity by 2030. SMRs are factory-fabricated, quick to deploy, and highly safe—perfect for nearby data centers—turning nuclear from a long-term strategic asset into a short-term investment highlight.

Goldman Sachs forecasts that by 2030, data center demand for nuclear power will reach tens of GW, representing a long-term structural opportunity for related supply chain companies.

Grid Upgrades: The Most Certain Investment Direction

Global policy and capital are increasingly focused on upgrading grid infrastructure. For example, Taiwan’s Taipower announced in 2022 a NT$564.5 billion plan to modernize the grid’s resilience. The US government is also actively promoting grid infrastructure investments, with annual scales reaching $68 billion.

This means high-margin, long-order-visibility manufacturers of grid equipment will enjoy long-term prosperity. Suppliers of high-voltage transformers, switchgear, and smart grid solutions are becoming the most stable beneficiaries in the energy sector.

Green Energy Transition: A Defensive Foundation for Energy Portfolio Allocation

Although AI-driven electricity demand is grabbing headlines, the long-term goal of global net-zero emissions (achieving greenhouse gas neutrality by 2050) remains unchanged. The UN and IEA forecast renewable energy will account for nearly 50% of global electricity by 2030.

Traditional solar and wind sectors have passed the overcapacity stage and are now in a phase of stable supply, declining costs, and steady demand recovery. These energy stocks tend to be less volatile, serving as a defensive backbone in a renewable energy portfolio, with lower long-term risks.

Selected Taiwanese Energy Stocks: Dual Drivers of AI and Green Energy

Delta Electronics (2308) — Power Electronics Leader Benefiting from High-Power-Density AI Servers

Delta is the absolute leader in power electronics and data center power supply, with core products including UPS uninterruptible power supplies, inverters, and smart grid solutions. As demand for high-power-density AI servers surges, Delta’s orders are expected to explode in 2025, with continued growth into 2026.

Another growth driver is automotive electronics. Among the top 20 global automakers, 75% are Delta customers. As EV penetration increases and certification barriers remain high, Delta’s automotive electronics revenue is poised for substantial growth.

Walsin Electric (1519) — Direct Beneficiary of Taipower’s Grid Reinforcement Plans

Walsin is a long-term core supplier to Taipower, providing transformers and key equipment, and is a leading domestic transformer manufacturer. Taipower’s grid resilience plan opens huge order opportunities for Walsin.

Additionally, Walsin controls about 20% of Taiwan’s EV charging station market. As EV adoption accelerates, demand for charging stations will rise sharply. US initiatives to bring manufacturing back and the booming Southeast Asian economies also boost overseas power equipment demand, offering Walsin potential unexpected growth.

United Renewable Energy (3576) — Solar Leader Entering a Cost Optimization Phase

After capacity optimization in 2025, United Renewable’s gross margin has bottomed out and rebounded. In 2026, driven by anti-dumping tariffs in Europe and the US and PERC to TOPCon technology upgrades, overseas module shipments are expected to grow over 15%.

Vertical integration gives it a competitive edge, and with global solar demand recovering steadily (IEA forecasts over 500 GW of new capacity in 2026), United Renewable’s long-term EPS will maintain steady growth, making it a classic green energy investment.

Sunwoda (4733) — Leader in Wind Power Materials with Highest Order Visibility

Sunwoda is a leading manufacturer of wind turbine blade materials, with the highest market share in epoxy resins and carbon fiber composites. The Taiwan offshore wind project’s Phase 3 accelerates in 2026, and development in the Asia-Pacific markets (Vietnam, Japan, etc.) is also speeding up. Sunwoda’s backlog exceeds NT$10 billion, with revenue expected to grow 18%.

As a preferred baseload renewable energy source, wind power’s long-term demand remains unchanged, making Sunwoda one of the most stable growth stocks among traditional new energy.

Yuanjing (6443) — Cost Optimizer for High-Efficiency Solar Modules

Yuanjing specializes in high-efficiency heterojunction (HJT) and TOPCon products. After the anti-subsidy investigations in Europe and the US in 2026, Taiwanese manufacturers’ market share is expected to increase. Yuanjing’s overseas orders have high visibility, with revenue projected to grow 12-15% annually. The company’s strong cost control and stable dividend policy make it suitable for investors seeking steady returns, with defensive characteristics in the green energy long-term trend.

Global Energy Stock Landscape: Key U.S. Core Stocks

Below are five selected U.S. energy stocks with higher growth certainty than traditional EV or solar concept stocks, combining growth potential and technological barriers, suitable for medium- to long-term allocation.

Constellation Energy (CEG) — The Absolute Leader in U.S. Nuclear Power Operations

Constellation Energy is the largest nuclear operator in the US, controlling about 20% of the country’s nuclear capacity. In 2025, it signed a 20-year restart agreement for the Three Mile Island plant with Microsoft, marking a revaluation of nuclear power in the AI era. Data center projects are expected to expand significantly in 2026. With stable cash flow and attractive dividends, EPS is forecasted to grow 15-20% annually. It combines defensiveness with AI-driven baseload growth, making it a core pick in a global energy portfolio.

Oklo (OKLO) — Pioneer in Micro Nuclear Reactor Technology

Oklo is a pioneer in micro nuclear reactors, endorsed by OpenAI CEO Sam Altman. The company focuses on deploying small reactors near data centers. Its progress in obtaining NRC approval in 2026 leads the industry, with potential clients like Amazon and Equinix already in negotiations. Its fast-fission technology is low-cost and quick to deploy, with explosive potential amid AI power shortages. Revenue is expected to start in 2026, with rapid valuation reassessment.

Eaton (ETN) — Power Grid Automation Equipment Giant

Eaton is a leader in grid automation and power management, with products including transformers, switchgear, and smart grid solutions. The demand for high-power-density transformers in AI data centers has extended lead times beyond 24 months, directly boosting Eaton’s orders in 2025. Grid-related growth is expected to exceed 25% in 2026. With high margins and institutional holdings, Eaton is a typical beneficiary in the era of grid bottlenecks.

GE Vernova (GEV) — GE’s Spin-off for the Global Power Grid

GE Vernova is the spin-off of GE’s power and renewable energy business, covering high-voltage transformers, HVDC transmission, and wind equipment. It is expected to benefit directly from global grid upgrade investments (annual scale about $68 billion) in 2026. The demand from AI clusters for transmission and distribution drives orders. Backlog hits record highs, with revenue forecasted to grow 15-18% in 2026, with reasonable valuation.

NextEra Energy (NEE) — The Largest Global Renewable Energy Group with Steady Growth

NextEra Energy is the world’s largest renewable energy company, leading in wind and solar capacity globally. In 2026, it will benefit from offshore wind and solar expansion, along with energy storage and data center green power supply. Its dividends are stable (annual payout growth over 10%), and EPS is expected to grow 8-10% annually amid the long-term net-zero transition. It’s a defensive core in traditional green energy investments, effectively balancing the volatility of AI-driven power stocks.

Practical Wisdom for Investing in Energy Stocks

The renewable energy sector offers high return potential but also involves risks like technological failures, supply chain bottlenecks, and regulatory changes. Successful energy stock investing requires three key elements:

Portfolio Allocation Strategy: Recommend 50-60% in AI-driven power stocks (high growth, high volatility), 30-40% in traditional energy stocks (stable, defensive), and the remaining 10% in cash or bonds as buffers. This mix allows participation in structural growth while controlling overall volatility.

Timing Principles: Energy stocks are volatile; avoid chasing highs. In a long-term upward trend, look for short-term pullbacks as entry points. History shows bear markets often accompany policy downturns, but every low is a long-term bull start.

Leading Indicator Monitoring: Focus on AI capital expenditure (via tech giants’ earnings reports), global grid investment scales, corporate order backlogs, and technological progress. The core of renewable energy stock investing is not hype but tracking order certainty and rigid power demand validation.

Under the dual drivers of AI era and global net-zero transition, 2026–2030 will be the most promising structural window for energy stocks. Whether local Taiwanese power equipment manufacturers or global nuclear and grid leaders, they will gain long-term growth momentum from this energy revolution. The key is to identify the right energy stocks, buy at reasonable prices, and hold with a long-term mindset to ultimately reap the excess returns from this structural bull market.