Benzinga·2025-10-01 00:46Core Insights - Tech giants like NVIDIA, Microsoft, and Meta are experiencing significant growth, attributed to the rising electricity costs associated with AI data centers, which market strategist Larry McDonald describes as a "middle-class rip-off" [1][2] - The rapid adoption of AI technologies is straining the energy grid, leading to increased wholesale power prices, which have surged by as much as 267% over the past five years in areas near major data center clusters [3][4] - The financial burden of rising energy costs is being passed down to households and smaller businesses, while tech companies benefit from record demand for their products and services [4][6] Company Performance - NVIDIA's stock has reached an all-time high, reflecting the company's strong position in the AI market and the demand for its GPUs [1] - Microsoft is scaling its data operations, contributing to the soaring demand for electricity and further driving up energy costs for consumers [4] - Meta is capitalizing on the growth of immersive AI-driven platforms, benefiting from the increased energy consumption tied to its infrastructure [4] Energy Sector Impact - Power suppliers, including utilities and grid operators like NextEra Energy, Duke Energy, and Dominion Energy, are profiting from the increased energy demand linked to AI data centers [5] - Independent power producers such as Constellation Energy and Vistra are also benefiting by supplying wholesale electricity at elevated prices due to the surge in demand [5] - The redistribution of energy costs highlights the disparity between Wall Street profits from AI-driven demand and the financial strain on consumers [6]