This Utility Stock Is Soaring on a Takeover Report. Why It Could Be an AI Play

Core Insights - AES shares surged by 16% following reports of acquisition talks with BlackRock's Global Infrastructure Partners, potentially valuing the deal at $38 billion, marking it as one of the largest infrastructure takeovers in history [1][5]. Financial Overview - AES is currently burdened with $29 billion in debt, which would be included in the acquisition deal [2]. - The acquisition talks are in advanced stages, but a final agreement has not yet been reached [2]. Industry Significance - The potential deal highlights the increasing interest in renewable energy providers as investors anticipate rising demand for power to support AI and cryptocurrency mining [3]. - AES has established contracts with major tech companies, including Google, Amazon, and Microsoft, to supply power for their AI data centers [2]. Historical Context - BlackRock acquired Global Infrastructure Partners last year for approximately $12.5 billion, which included $3 billion in cash and 12 million BlackRock shares [3]. - Prior to this, GIP had a $6.2 billion partnership deal to take the Minnesota-based energy company Allete private [3].