Power and utility companies are expected to experience sustained momentum into 2026 as surging artificial intelligence workloads drive unprecedented electricity demand, according to a report from Evercore ISI. The research firm points to a growing rush among data center operators to secure durable and reliable energy supplies as they expand compute capacity.
Evercore labels the trend a "Race to Power," noting that announced projects have already surpassed 125 GW of incremental demand. The firm anticipates that 2026 will produce a string of "off-cycle" catalyst announcements as hyperscalers finalize long-term power purchase agreements to underpin aggressive expansion plans.
Evercore ISI's selected power names for 2026
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NextEra Energy, Inc (NYSE:NEE) - NextEra is identified as the leading renewable-energy provider in the U.S., combining regulated utility operations with large-scale clean-energy development. Evercore argues that the company's mixed model - utility service plus project development - positions it to supply the dual needs of data centers for dependable and sustainable power.
NextEra reported fourth-quarter 2025 adjusted earnings of $0.54 per share on revenue of $6.5 billion, with revenues coming in below expectations. After the results, Mizuho raised its price target on the company to $90.
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Vistra Corp (NYSE:VST) - As an integrated power company, Vistra's diversified generation mix and retail footprint offer flexibility to serve growing demand. The combination of conventional dispatchable resources and renewable assets is cited as attractive to data centers that require steady, reliable power.
Vistra has secured power purchase agreements with Meta for its nuclear assets and completed a private offering of $2.25 billion in senior secured notes.
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Sempra (NYSE:SRE) - Evercore underscores Sempra's position across the energy infrastructure chain, including investments in natural gas infrastructure that complement its utility operations as power demand increases.
Sempra reported third-quarter 2025 results that surpassed analyst expectations, posting adjusted earnings per share of $1.11. Goldman Sachs upgraded Sempra to a Buy rating, highlighting the company's focus on its Texas operations.
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American Electric Power Company (NASDAQ:AEP) - With one of the largest electricity transmission networks in the U.S., AEP is positioned to connect new generation to expanding demand centers, including regions experiencing strong data center development.
AEP announced a $2.65 billion agreement to purchase solid oxide fuel cells from Bloom Energy for a new generation facility. The company also reached an agreement with the Icahn Group to add a non-voting observer to its board.
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Xcel Energy (NASDAQ:XEL) - Xcel is presented as a leading regulated utility in the clean energy transition, making it a preferred partner for technology firms seeking renewable-sourced power. Its carbon reduction targets align with sustainability requirements many AI-focused companies emphasize.
A subsidiary of Xcel Energy filed a request in Colorado seeking a $190 million increase in natural gas revenue. Separately, Mizuho lifted its price target on Xcel to $86, citing a robust growth outlook.
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Public Service Enterprise Group (NYSE:PEG) - PSEG's northeastern service territory covers densely populated markets with rising power needs. The company's grid modernization initiatives are noted as supportive of the reliability demanded by data center operations.
Wells Fargo upgraded Public Service Enterprise Group to Overweight. The company also announced that Geisha J. Williams will join its Board of Directors, effective March 1, 2026.
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Bloom Energy (NYSE:BE) - Bloom offers fuel cell-based distributed generation that can provide data centers with on-site power reliability while addressing environmental goals. Its technology is positioned to help meet both energy-security and emissions-reduction objectives.
An air permit filing in Texas disclosed plans for Bloom Energy's fuel cells to supply a new 1.5 GW off-grid data center. This follows American Electric Power's major purchase agreement for Bloom's fuel cell technology.
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Fermi (NYSE:FRMI) - Fermi's focus on grid infrastructure is highlighted as strategically important given the scale of investment needed to connect new generation to the transmission network as demand grows.
Fermi disclosed that a prospective tenant terminated a $150 million construction funding agreement for one of its sites. In separate developments, Texas Capital Securities initiated coverage of the company with a Buy rating.
Evercore's framing for 2026
Evercore suggests that while 2025 represented a period of "price discovery" in the power sector, 2026 may bring "price certainty" as long-term contracts crystallize the economic outlook for the sector. The firm expects continued announcements outside regular cycles as hyperscale operators finalize power arrangements to underwrite expansion.
Note on coverage and context - Evercore's analysis focuses on the intersection of growing compute requirements driven by AI and the availability of reliable, low-carbon power solutions. The report identifies specific commercial developments, financing actions, regulatory filings, corporate purchases, and board-level changes that it views as evidence of incumbents and specialized firms preparing to meet rising demand.
Implications for markets and sectors
The Evercore assessment underscores potential upside across multiple segments of the power value chain: renewable project developers, regulated utilities, integrated generation and retail operators, fuel cell and distributed generation technology providers, and companies focused on grid interconnection and transmission capacity. Equity investors, corporate buyers of power, and market participants tracking utility revenue drivers are likely to monitor contract announcements and permitting developments closely.