Benzinga·2025-11-07 19:29Core Insights - The utility sector is experiencing a significant transformation driven by the increasing energy demands of artificial intelligence and related technologies, leading to a surge in investor interest [1][2][3] Industry Overview - The Utilities Select Sector SPDR Fund (NYSE:XLU) has increased by 23.4% year-to-date, outperforming the S&P 500 and approaching technology benchmarks [2] - This growth is not attributed to traditional factors like lower interest rates but rather to the rising energy needs from AI, data centers, and quantum computing [3][5] - U.S. data centers are projected to require 22% more grid power by the end of 2025 compared to 2024, and three times as much by 2030 [5] Company Highlights - Entergy Corporation (NYSE:ETR): Trading at $97 per share, up 26.2% year-to-date, with plans to invest $41 billion into operations through 2029 and a long-term earnings growth forecast of 10.2% [11] - Constellation Energy Corporation (NASDAQ:CEG): Trading at $331 per share, up 57% year-to-date, with several data center contracts signed at above-market prices, indicating strong growth potential [12][13] - Nextera Energy (NYSE:NEE): Trading at $81 per share, up 14.3% year-to-date, recognized for its alignment with hyperscalers and a strong focus on renewable energy, offering a dividend yield of over 3% [14][15]