Core Insights - The utilities sector has shown a remarkable turnaround in 2025, returning over 15% year-to-date and outperforming the S&P 500 [2] - The growth is driven not only by its defensive appeal but also by the increasing demand for power from artificial intelligence (AI) data centers [3][5] Industry Overview - Utilities have traditionally been viewed as stable dividend payers, but the current market dynamics are shifting this perception [1] - The International Energy Agency projects that electricity use by data centers will more than double by 2030, indicating a significant growth opportunity for utilities [4] AI Power Surge - Running large AI models requires substantial energy, with systems like GPT-4 needing continuous loads of approximately 30 megawatts, enough to power around 20,000 homes [4] - Northern Virginia's "Data Center Alley" is expected to see demand quadruple by the end of the decade, potentially accounting for half of Virginia's entire grid [4] Revenue Opportunities - Utilities are positioned to benefit from the demand for reliable, low-carbon energy, aligning with their nuclear and natural-gas portfolios [5] - Partnerships with major tech companies, such as Meta and Amazon, highlight the growing reliance on utilities for energy supply [5] Investment Vehicles - For generalist investors, ETFs like Utilities Select Sector SPDR (XLU) and Vanguard Utilities ETF (VPU) provide exposure to companies involved in long-term AI energy contracts, with dividend yields in the 2.5–3% range [6][10] Individual Stock Opportunities - Entergy (ETR) offers low-cost electricity and strong nuclear assets, with a project pipeline that could add 5–10 gigawatts of new load from data centers [8] - DTE Energy (DTE) has a reliable nuclear plant and a potential 7 gigawatts of new load, alongside a strong dividend history [9][11] - Constellation Energy is the largest operator of nuclear power plants in the U.S., benefiting from agreements with major tech firms, although its valuation is currently high [12]

Group 1 - The last analysis on the Cohen & Steers Infrastructure Fund (UTF) was published on April 2, comparing it with peer UTG and suggesting UTF as a defensive play due to an inverted yield curve [1] - The core investment style of the company focuses on providing actionable and clear ideas derived from independent research [1] - The company offers a service called Envision Early Retirement, which provides at least one in-depth article per week on investment ideas [1] Group 2 - The company claims to have helped its members outperform the S&P 500 while avoiding significant drawdowns amid extreme volatility in both equity and bond markets [2] - A trial membership is available to assess the effectiveness of the company's proven investment methods [2]

Group 1 - Utilities (XLU) is one of only three S&P 500 sector ETFs that is up for the year, indicating strong performance in a generally declining market [1] - Despite a significant rebound in US equities since last week's lows, most sectors are experiencing notable declines, highlighting the defensive nature of utilities [1] - The trend suggests that defensive sectors like utilities remain in vogue as investors seek stability amid market volatility [1]