The AI surge is not only transforming software and chips, it is also reshaping the power grid that keeps data centers running. Record US$200b in M&A across the US power and utility sector highlights how critical reliable electricity has become for AI workloads. For investors, this creates a fresh way to think about exposure to AI, through companies tied to power generation, transmission, and distribution. This article breaks down how the AI-driven need for electricity links to real businesses and reveals 3 stocks from our AI Infrastructure Power Stocks With High Data Center Exposure screener that appear well positioned.

Dominion Energy (D)

Overview: Dominion Energy is a regulated utility that supplies electricity and natural gas to millions of customers across Virginia, North Carolina and South Carolina, and also owns a portfolio of long term contracted renewable power and renewable natural gas projects.

Operations: Dominion Energy generates most of its US$17.4b in revenue from Dominion Energy Virginia (US$12.8b) and Dominion Energy South Carolina (US$3.6b), with smaller contributions from its Contracted Energy segment and corporate activities, all within the United States.

Market Cap: US$61.0b

Dominion Energy sits at the heart of the AI power story, supplying electricity into Northern Virginia, one of the world’s largest data center hubs, where management reports dozens of large scale facilities already connected and more in the queue. That demand supports multi decade grid and transmission investment plans. In addition, regulated returns and a 3.85% dividend yield appeal to investors looking for income and stability tied to real infrastructure. At the same time, heavy capital spending, reliance on external borrowing and large offshore wind commitments mean execution and regulatory outcomes really matter. For investors watching how the AI driven power build out, the NextEra merger proposal and Dominion’s valuation all intersect, the most important details are in the fine print of its projects, balance sheet and earnings path.

Dominion Energy’s AI driven grid buildout, regulated returns and 3.85% yield could be masking a much bigger story around project risk, capital intensity and earnings quality, which is laid bare in the 3 key rewards and 2 important warning signs (1 is major!)

Exelon (EXC)

Overview: Exelon is a large US utility holding company that delivers electricity and natural gas to residential, commercial, industrial and public-sector customers across several major metropolitan regions from its base in Chicago.

Operations: Exelon generates most of its revenue from Commonwealth Edison (US$7.1b), Pepco Holdings (US$7.4b), Baltimore Gas and Electric (US$5.5b) and PECO Energy (US$4.8b), with smaller contributions from other activities and intersegment eliminations.

Market Cap: US$48.5b

Exelon is drawing attention because it sits at the center of the AI power buildout, with management now seeing about 11 gigawatts of high probability data center load across its territories and a US$41.7b capital plan aimed at grid and transmission upgrades through 2029. That scale, combined with regulated returns and a 3.54% dividend yield, gives investors a mix of income and exposure to rising electricity demand from AI, EVs and broader electrification. The flip side is meaningful reliance on external borrowing, dividends that are not well covered by free cash flow, and ongoing rate case and policy scrutiny that could affect how quickly costs are recovered. How those trade offs balance out is where the real investment story in Exelon starts to emerge.

Exelon’s accelerating data center load and US$41.7b grid plan hint at a much bigger AI power story, but the real tension sits in its 4 key rewards and 2 important warning signs (1 is major!), where one detail could change how you view the stock

NextEra Energy (NEE)

Overview: NextEra Energy is a large US utility that supplies electricity to around 12 million people in Florida through Florida Power & Light and develops, owns and operates a major portfolio of wind, solar, nuclear, natural gas and battery storage assets serving wholesale customers across North America.

Operations: NextEra Energy generates most of its revenue from Florida Power & Light at US$18.5b, with additional contributions from its competitive renewables arm NextEra Energy Resources at US$8.9b and Corporate and Other at US$0.4b.

Market Cap: US$184.7b

NextEra Energy sits at the crossroads of the AI power buildout and the energy transition. It combines a large regulated utility in a fast growing state with one of the world’s biggest renewables and storage platforms, backed by a deep project backlog and extensive grid assets that data center operators increasingly care about. Earnings growth has been strong and margins are high. However, the dividend yield is only about 2.8% and not well covered by free cash flow, and the company relies heavily on external funding to support a planned US$94b plus of investment and the proposed Dominion Energy merger. How this capital spending, AI driven power demand, merger execution risk and valuation fit together is where the real story for NextEra Energy starts to get interesting for investors.

NextEra Energy’s huge project pipeline and AI exposed grid assets could be only half the story, with the real twist sitting in the analyst forecasts for NextEra Energy that may reveal an unexpected wrinkle investors are missing

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.