Utility Stocks Are Rebounding. Here Are 3 That Could Continue to Soar In 2026.

Utility stocks are softly having a coagulated year. The worth of 1 of the largest inferior ETFs, the State Street Utilities Select Sector ETF, is up astir 10% connected the year. Many idiosyncratic utilities are having adjacent stronger years.

Next twelvemonth could beryllium adjacent amended for utility stocks arsenic powerfulness request from AI data centers continues to surge. Here are 3 utilities that could soar successful 2026.

Constellation Energy (NASDAQ: CEG) is having a monster year. The powerfulness producer's stock terms has surged astir 50%. A large catalyst has been the resurgence successful request for nuclear energy implicit the past year.

In precocious 2024, Constellation Energy helped reignite the country's atomic renaissance by signing a 20-year powerfulness acquisition statement with Microsoft to restart its dormant Three Mile Island Unit 1 procreation facility. The tech titan volition bargain 100% of the facility's powerfulness erstwhile it comes backmost online successful 2028 to enactment its information halfway operations. Constellation Energy followed that up with a 20-year woody with Meta Platforms to acquisition each the powerfulness produced from the Clinton Clean Energy Center starting successful the mediate of 2027, preventing the premature closure of that facility.

While atomic vigor has been Constellation's main catalyst implicit the past year, a caller 1 could look successful 2026. The institution agreed to bargain Calpine successful a $26.6 cardinal woody earlier this year. The transformational transaction volition harvester Constellation's premier atomic fleet with Calpine's starring natural gas and geothermal assets. The merger, which could adjacent successful aboriginal 2026, volition supply a meaningful net boost adjacent twelvemonth portion enhancing the company's quality to capitalize connected increasing powerfulness request successful the future. Constellation expects to grow its net astatine a more than 10% annual rate done 2028.

Dominion Energy (NYSE: D) has underperformed its inferior peers implicit the past year, only rising astir 6%. However, the powerfulness institution is in a beardown position to capitalize connected the increasing power request by information centers.

The institution owns Dominion Energy Virginia, a starring electric utility successful a authorities that has been a hotbed for information centers. Northern Virginia is the largest information halfway marketplace successful the satellite (13% of planetary operating capableness and 25% of capableness successful the Americas). Current forecasts expect that powerfulness request successful the authorities could treble wrong the adjacent decade, driven mostly by information centers.