These 3 Stocks Look to Power AI Data Centers With Natural Gas

Group 1: Nuclear Energy Market Trends - Nuclear energy stocks are gaining popularity in 2024 as investors seek to capitalize on companies supporting the AI revolution, but the market is becoming saturated with demand from hyperscaler companies [1] - Hyperscaler companies are consuming the excess nuclear energy capacity available from U.S. firms, prompting companies like Constellation Energy to recommission previously mothballed sites [1] Group 2: Small Modular Reactors (SMRs) - New full-size nuclear plants require significant investment, costing tens of billions of dollars and taking over a decade to complete, leading to the emergence of small modular reactors (SMRs) as a faster and cheaper alternative [2] - Currently, there are no operational SMRs in the United States, raising questions about their economic viability [2] Group 3: Low-Carbon Energy Solutions - Energy companies are developing low-carbon solutions by combining natural gas with carbon sequestration technology to meet the carbon reduction goals of hyperscalers [3] - Exxon Mobil plans to utilize low-carbon intensity natural gas and its carbon sequestration technology to capture over 90% of CO2 emissions from data centers [6][7] Group 4: Key Players in the Market - Exxon Mobil has the largest carbon capture and storage network globally, with contracts for 6.7 million tons of carbon sequestration annually, positioning it well for low-carbon energy solutions [8] - GE Vernova, while not a utility, is focusing on natural gas turbine sales for data centers and plans to invest in carbon capture technology in the future [9][10] - Entergy has signed a $10 billion deal with Meta Platforms to build a large data center powered by natural gas, with plans to incorporate hydrogen and carbon capture technology over time [12][13]