2 Energy Stocks Riding the Data Center Power Crunch

Constellation Energy locked in a 20-year power supply agreement with Microsoft to fuel AI data center expansion, leveraging CEG's position as operator of the largest nuclear fleet in the United States. GE Vernova enters the picture with a $176 billion backlog in power generation and distribution hardware, positioning GEV to supply the infrastructure needed to meet surging electricity demand from compute-intensive AI workloads.

The CEG-MSFT deal signals a structural shift as hyperscalers lock in long-term baseload capacity rather than relying on spot markets. Nuclear's carbon-free, round-the-clock output aligns with both AI's uptime requirements and corporate emissions targets. GEV's backlog reflects broader capex acceleration across utilities upgrading grid capacity and generation assets to handle data center loads that can exceed 100 megawatts per facility.

Both stocks offer exposure to a multi-year infrastructure build-out. CEG benefits from contracted revenue streams at potentially favorable rates as power prices rise. GEV captures the capex wave from utilities and independent power producers racing to add capacity.