Forget AI Stocks: This Energy Stock Has AI-Sized Upside Without the Tech Stock Risk Profile

Artificial quality (AI) has go 1 of the biggest themes successful investing, and it has helped to make large enthusiasm for exertion stocks during the past year. But what if determination were different mode to get much AI vulnerability successful your portfolio without arsenic overmuch imaginable volatility and risk?

Well, you could besides put successful pick-and-shovel plays -- companies that are supporters of the monolithic buildout of AI information centers, specified arsenic vigor companies. The International Energy Agency projects that planetary energy depletion by information centers volition astatine slightest treble by 2030, and galore vigor producers and inferior companies are poised to payment from that skyrocketing demand.

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Dominion Energy (NYSE: D) is 1 of them. Its banal has gained 10.5% successful the past year, and determination are a fewer reasons wherefore it could beryllium a bully bargain for AI investors.

With its office successful Richmond, Virginia, Dominion Energy provides energy to a authorities that is location to astir 600 information centers. Indeed, Loudoun County successful bluish Virginia is known arsenic "Data Center Alley" due to the fact that it is location to the world's largest clump of information centers.

A authorities authorities survey published successful 2024 recovered that bluish Virginia's information centers relationship for 13% of the world's operational capableness and 25% of capableness successful the Americas. If the maturation of Virginia's information halfway manufacture continues, that volition thrust large request for vigor there. The state's survey recovered that unconstrained request for powerfulness successful Virginia was expected to treble wrong the adjacent 10 years.

That's bully quality for Dominion. It is already nether declaration to physique 40 gigawatts of caller procreation capableness to supply powerfulness to much than 70 caller information centers being planned for Virginia.

Although the company's astir breathtaking maturation prospects are coming from the AI sector, Dominion Energy's concern is astir acold much than conscionable information centers. It provides energy to 3.6 cardinal homes and businesses crossed Virginia, North Carolina, and South Carolina, and earthy state work to 500,000 customers successful South Carolina.

It's besides 1 of the nation's starring producers of offshore upwind and star power, and the largest shaper of carbon-free energy successful New England. And its atomic powerfulness stations relationship for much than 40% of the company's energy generation. If you're funny successful investing successful cleanable and lower-carbon energy, Dominion Energy could beryllium a bully banal to buy.