Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTThomas Niel, The Motley FoolFri, July 17, 2026 at 4:27 PM GMT+2 5 min readArtificial intelligence (AI) data centers are popping up everywhere, to the point where it's becoming a source of political backlash. Yet while the debate over where to build data centers rages on, one thing remains very certain.As AI data centers proliferate, electricity demand will continue to rise as well. While this trend could bode well for utility stocks across the board, it could serve as a strong long-term catalyst for the following three electric utility stocks in particular: Constellation Energy Group (NASDAQ: CEG), Entergy (NYSE: ETR), and NextEra Energy (NYSE: NEE).Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »Image source: Getty Images.Spun off from utilities giant Exelon in 2022, Constellation Energy Group provides electricity and natural gas to a variety of customers, including regulated utility companies. What makes Constellation especially interesting is its high exposure to nuclear power.That is, the company owns and operates 15 nuclear power plants, primarily in the Midwest and Mid-Atlantic. In the past, nuclear power has been a controversial industry, but in recent years, public and private stakeholders have recognized nuclear power's value as a scalable, low-carbon energy source, with nuclear power plants a viable "green" alternative to coal- and natural gas-fired power plants.When it comes to the AI data center trend, Constellation benefits in two ways. First, greater demand from hyperscalers translates into greater demand from Constellation's regulated utility customers. Second, as these same hyperscalers begin entering into direct power deals with independent power generation companies, Constellation has secured long-term deals with companies like Meta Platforms.Thanks to its AI-related catalyst, analysts anticipate Constellation's earnings to grow by nearly 25% this year, and by nearly 16% in 2027. This double-digit earnings growth could help sustain Constellation's low-20s forward earnings multiple, with shares continuing to rise in line with earnings growth. Alongside appreciation potential, don't discount Constellation's strengths as a dividend stock.With a forward yield of around 0.7%, Constellation certainly isn't one of the high-yield dividend stocks, but its quarterly payouts have increased by over threefold since the company went public in 2022.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info