Independent power producers Vistra , Constellation Energy and Talen Energy are positioned to benefit from a "paradigm shift" in electric demand from artificial intelligence data centers, according JPMorgan.
"We see structural tailwinds, including manufacturing onshoring, broader electrification trends (transportation, heating, and more), as well [as] data center development underpinning a paradigm shift in power demand," Tonet and his team told clients in research report.
Demand from tech companies for carbon-free power to drive their data centers will transform nuclear power and enable its owners to "command a substantial premium," they wrote.
CEG 1Y mountain Constellation Energy shares over the past 12 months.
TLN 1Y mountain Talen Energy stock over the past year
Persons:
Jeremy Tonet, Tonet, Vistra
Organizations:
Constellation Energy, Talen, JPMorgan, Lone Star State, VST, Microsoft, Constellation, Amazon Web Services, Susquehanna, Energy
Locations:
Wednesday's, Texas, Pennsylvania