U.S. power grid overhaul sparks opportunities as Global X showcases CEG, PWR, ETN, and SMR
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 21 2025
0mins
Source: SeekingAlpha
U.S. Energy Transformation: The U.S. is undergoing a significant energy transformation due to rising electricity demand from data centers and electrification initiatives, creating opportunities for companies involved in infrastructure development.
Investment Opportunities: Global X identifies key players like Constellation Energy, Quanta Services, Eaton Corp, and NuScale Power as leaders in the electrification revolution, presenting substantial investment prospects in the evolving energy economy.
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Analyst Views on CEG
Wall Street analysts forecast CEG stock price to rise
7 Analyst Rating
6 Buy
1 Hold
0 Sell
Strong Buy
Current: 324.870
Low
350.00
Averages
414.86
High
460.00
Current: 324.870
Low
350.00
Averages
414.86
High
460.00
About CEG
Constellation Energy Corporation is a producer of emissions-free energy and an energy supplier to businesses, homes and public sector customers nationwide. The Company’s nuclear, hydro, wind, and solar generation facilities have the generating capacity to power the equivalent of 16 million homes, providing about 10% of the nation's clean energy in the United States. Its segments include Mid-Atlantic, Midwest, New York, ERCOT, and Other Power Regions. Through its integrated business operations, it sells electricity, natural gas, and other energy-related products and sustainable solutions to various types of customers, including distribution utilities, municipalities, cooperatives, and commercial, industrial, public sector, and residential customers in markets across multiple geographic regions. Its nuclear fleet has a generating capacity of approximately 22 gigawatts (GWs). It operates approximately 10 GWs of natural gas, oil, hydroelectric, wind, and solar generation assets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Trump Pushes Tech Firms for Self-Powered AI Data Centers
- Self-Power Commitment: Trump is set to sign an agreement with major tech firms like Amazon, Google, and Meta, mandating them to supply their own power for AI data centers, addressing rising public anger over electricity prices, although the specifics of the commitment remain unclear.
- Rising Electricity Pressure: Average residential electricity prices in the U.S. increased by 6% in 2025, contrasting Trump's promise to halve prices during his term, highlighting the government's challenges in controlling energy costs, which could impact his support in the midterm elections.
- Implementation Challenges: The decentralized nature of electric grid regulations across states poses significant hurdles for the Trump administration in converting the pledge into actionable policy, with experts indicating that new federal legislation is necessary to address power supply shortages.
- Increased Political Pressure: Trump is leveraging his political influence to pressure tech companies into absorbing the costs associated with their data centers, despite the complexities arising from state-level regulation of power generation, which may complicate policy implementation.
See More
AI-Induced Energy Crisis: Nuclear Power as the Solution
- Surge in Energy Consumption: The IEA forecasts that global energy consumption from data centers will double by 2030, with U.S. data centers projected to consume between 6.7% and 12% of all energy produced by 2028, creating significant pressure on electricity supply.
- Accelerated Nuclear Investment: The U.S. Department of Energy aims to triple nuclear energy production by mid-century, with tech giants like Microsoft and Alphabet investing in reviving decommissioned nuclear plants to meet the rising electricity demands of AI.
- Microsoft's Partnership with Constellation: Microsoft has signed a 20-year power purchase agreement with Constellation Energy, the largest clean energy producer in the U.S., agreeing to pay approximately $110-$115 per megawatt hour to restart the Three Mile Island nuclear plant, ensuring a stable power supply.
- NextEra Energy Growth: NextEra Energy has partnered with Google to bring Iowa's Duane Arnold Energy Center back online, expecting a 13% adjusted EPS growth for 2025 and maintaining an 8% CAGR over the next decade, highlighting the critical role of nuclear energy in the AI era.
See More
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- Nuclear Partnership Agreement: Microsoft has signed a 20-year power purchase agreement with Constellation Energy, the largest nuclear producer in the U.S., to bring the Three Mile Island nuclear plant back online in Pennsylvania, with expected prices between $110 and $115 per megawatt hour, underscoring the importance of nuclear energy.
- Stable Financial Growth: Constellation Energy anticipates adjusted earnings per share to rise to $9.39 in 2025 from $8.67 in 2024, with a projected growth rate of over 13% through 2030, indicating its solid investment potential amidst rising AI power demands.
- NextEra Energy Outlook: NextEra Energy is collaborating with Alphabet to restart the Duane Arnold nuclear plant in Iowa, expecting a 13% increase in adjusted EPS for 2025 and an 8% compound annual growth rate over the next decade, showcasing its strong position in nuclear energy investments.
See More
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- Surging Power Demand: Deloitte forecasts a 30-fold increase in power consumption by U.S. AI data centers from 2024 to 2035, driving investment demand for power suppliers, particularly companies like Bloom Energy.
- Bloom Energy's Growth: Bloom Energy reported $778 million in revenue last quarter, a 36% year-over-year increase, as its hydrogen fuel cell technology becomes a viable onsite power production option, with expectations of over 50% revenue growth in the next two years.
- Nuclear Renaissance Opportunity: Constellation Energy is restarting a nuclear reactor at Pennsylvania's Three Mile Island to supply power for Microsoft's AI data center, with U.S. nuclear output expected to quadruple by 2050, highlighting its significance in the energy market.
- GE Vernova's Order Surge: GE Vernova anticipates $38.1 billion in revenue for 2025, only a 9% increase from 2024, but total orders surged 34% to $59.3 billion, indicating substantial potential earnings in the AI data center power supply chain.
See More
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- Hydrogen Fuel Cell Growth: Bloom Energy reported $778 million in revenue last quarter, a 36% year-over-year increase, indicating a rapid rise in demand for its hydrogen fuel cell technology, particularly as data centers urgently seek clean energy solutions.
- Nuclear Power Revival: Constellation Energy is restarting the Three Mile Island nuclear plant in Pennsylvania to supply electricity for a nearby Microsoft AI data center, highlighting the expected quadrupling of U.S. nuclear output by 2050 and the critical role of nuclear energy in future energy structures.
- GE Vernova Order Surge: GE Vernova anticipates $38.1 billion in revenue for 2025, a 9% increase from 2024, but total orders soared 34% to $59.3 billion, reflecting strong demand for its energy equipment and significant growth potential.
- Optimistic Investment Outlook: Analysts are bullish on Bloom Energy's growth prospects, forecasting a doubling of its earnings per share next year; despite a current P/E ratio exceeding 100, the ongoing revenue growth positions it as a long-term investment opportunity.
See More
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Investment Opportunities in AI: Investors may still find opportunities to enter positions in AI companies, despite many already having established notable alliances in recent months.
Emerging AI-Focused ETFs: Several AI-focused exchange-traded funds (ETFs) are providing various strategies for investors, with some newer entrants standing out in the AI ETF landscape.
Comparative Performance of AI ETFs: The Tortois AI Infrastructure ETF (TCAI) and the Defiance AI & Power Infrastructure ETF (AIPO) offer different exposures to the AI industry, with TCAI focusing on energy, data centers, and technology, while AIPO targets companies involved in AI hardware and robotics.
See More
Trump Pushes Tech Firms for Self-Powered AI Data Centers
- Self-Power Commitment: Trump is set to sign an agreement with major tech firms like Amazon, Google, and Meta, mandating them to supply their own power for AI data centers, addressing rising public anger over electricity prices, although the specifics of the commitment remain unclear.
- Rising Electricity Pressure: Average residential electricity prices in the U.S. increased by 6% in 2025, contrasting Trump's promise to halve prices during his term, highlighting the government's challenges in controlling energy costs, which could impact his support in the midterm elections.
- Implementation Challenges: The decentralized nature of electric grid regulations across states poses significant hurdles for the Trump administration in converting the pledge into actionable policy, with experts indicating that new federal legislation is necessary to address power supply shortages.
- Increased Political Pressure: Trump is leveraging his political influence to pressure tech companies into absorbing the costs associated with their data centers, despite the complexities arising from state-level regulation of power generation, which may complicate policy implementation.
See More
AI-Induced Energy Crisis: Nuclear Power as the Solution
- Surge in Energy Consumption: The IEA forecasts that global energy consumption from data centers will double by 2030, with U.S. data centers projected to consume between 6.7% and 12% of all energy produced by 2028, creating significant pressure on electricity supply.
- Accelerated Nuclear Investment: The U.S. Department of Energy aims to triple nuclear energy production by mid-century, with tech giants like Microsoft and Alphabet investing in reviving decommissioned nuclear plants to meet the rising electricity demands of AI.
- Microsoft's Partnership with Constellation: Microsoft has signed a 20-year power purchase agreement with Constellation Energy, the largest clean energy producer in the U.S., agreeing to pay approximately $110-$115 per megawatt hour to restart the Three Mile Island nuclear plant, ensuring a stable power supply.
- NextEra Energy Growth: NextEra Energy has partnered with Google to bring Iowa's Duane Arnold Energy Center back online, expecting a 13% adjusted EPS growth for 2025 and maintaining an 8% CAGR over the next decade, highlighting the critical role of nuclear energy in the AI era.
See More
Nuclear Energy to Support AI Data Center Power Demand
- Surging Power Demand: The International Energy Agency projects that global data center energy consumption will double by 2030, with U.S. data centers expected to consume between 6.7% and 12% of total electricity by 2028, highlighting the immense power needs driven by AI.
- Nuclear Partnership Agreement: Microsoft has signed a 20-year power purchase agreement with Constellation Energy, the largest nuclear producer in the U.S., to bring the Three Mile Island nuclear plant back online in Pennsylvania, with expected prices between $110 and $115 per megawatt hour, underscoring the importance of nuclear energy.
- Stable Financial Growth: Constellation Energy anticipates adjusted earnings per share to rise to $9.39 in 2025 from $8.67 in 2024, with a projected growth rate of over 13% through 2030, indicating its solid investment potential amidst rising AI power demands.
- NextEra Energy Outlook: NextEra Energy is collaborating with Alphabet to restart the Duane Arnold nuclear plant in Iowa, expecting a 13% increase in adjusted EPS for 2025 and an 8% compound annual growth rate over the next decade, showcasing its strong position in nuclear energy investments.
See More
Promising Prospects for AI Data Center Power Suppliers
- Surging Power Demand: Deloitte forecasts a 30-fold increase in power consumption by U.S. AI data centers from 2024 to 2035, driving investment demand for power suppliers, particularly companies like Bloom Energy.
- Bloom Energy's Growth: Bloom Energy reported $778 million in revenue last quarter, a 36% year-over-year increase, as its hydrogen fuel cell technology becomes a viable onsite power production option, with expectations of over 50% revenue growth in the next two years.
- Nuclear Renaissance Opportunity: Constellation Energy is restarting a nuclear reactor at Pennsylvania's Three Mile Island to supply power for Microsoft's AI data center, with U.S. nuclear output expected to quadruple by 2050, highlighting its significance in the energy market.
- GE Vernova's Order Surge: GE Vernova anticipates $38.1 billion in revenue for 2025, only a 9% increase from 2024, but total orders surged 34% to $59.3 billion, indicating substantial potential earnings in the AI data center power supply chain.
See More
Bloom Energy and Constellation Energy Lead in Hydrogen and Nuclear Power
- Hydrogen Fuel Cell Growth: Bloom Energy reported $778 million in revenue last quarter, a 36% year-over-year increase, indicating a rapid rise in demand for its hydrogen fuel cell technology, particularly as data centers urgently seek clean energy solutions.
- Nuclear Power Revival: Constellation Energy is restarting the Three Mile Island nuclear plant in Pennsylvania to supply electricity for a nearby Microsoft AI data center, highlighting the expected quadrupling of U.S. nuclear output by 2050 and the critical role of nuclear energy in future energy structures.
- GE Vernova Order Surge: GE Vernova anticipates $38.1 billion in revenue for 2025, a 9% increase from 2024, but total orders soared 34% to $59.3 billion, reflecting strong demand for its energy equipment and significant growth potential.
- Optimistic Investment Outlook: Analysts are bullish on Bloom Energy's growth prospects, forecasting a doubling of its earnings per share next year; despite a current P/E ratio exceeding 100, the ongoing revenue growth positions it as a long-term investment opportunity.
See More
Three Simple ETF Options to Incorporate AI into Your Portfolio
NVIDIA's Strong Q4 Earnings: NVIDIA Corp. reported exceptional earnings for Q4, indicating that the AI phenomenon continues to grow rapidly, defying fears of a slowdown in the industry.
Investment Opportunities in AI: Investors may still find opportunities to enter positions in AI companies, despite many already having established notable alliances in recent months.
Emerging AI-Focused ETFs: Several AI-focused exchange-traded funds (ETFs) are providing various strategies for investors, with some newer entrants standing out in the AI ETF landscape.
Comparative Performance of AI ETFs: The Tortois AI Infrastructure ETF (TCAI) and the Defiance AI & Power Infrastructure ETF (AIPO) offer different exposures to the AI industry, with TCAI focusing on energy, data centers, and technology, while AIPO targets companies involved in AI hardware and robotics.
See More
