NextEra Energy Is Becoming the Utility Sector's Biggest AI Power Bet -- Here Are the Numbers That Prove It

NextEra Energy (NYSE: NEE) is America's biggest electric utility, providing reliable power to over 12 million people in Florida through its regulated utility FPL. Its energy resources business is also one of the country's largest developers of clean energy infrastructure. These leading businesses put it in a strong strategic position to capitalize on the growing demand for power by AI data centers.

It's rapidly becoming the go-to power source for data center developers. Here are the numbers showing the utility stock's leading edge in the AI power age.

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FPL is leading the charge to power large loads in Florida

Large power users, such as data centers, are turning directly to the source to meet their power needs. They're increasingly signing power purchase agreements (PPAs) with electric utilities and competitive power producers to secure future electricity.

Many data center developers are making the strategic decision to build new facilities in Florida due to its favorable business climate and FPL's ability to meet their power needs. FPL currently has about 21 gigawatts (GW) of interest from large-load customers, such as hyperscale data centers that value speed to market, reliability, and competitive power pricing. The company is in active discussions with 12 GW of capacity that it believes it could start service as soon as 2028. Few electric utilities have the scale and financial resources to support that level of near-term demand. For perspective, the five largest electric generation owners in the U.S., excluding NextEra, have between 37 and 56 GW of operational capacity, compared to NextEra's 80 GW.

NextEra's data center hub strategy can meet developers' needs

NextEra's energy resources segment is also capitalizing on surging AI data center power demand. The company is bringing its Duane Arnold nuclear power plant back online to support the surging power needs of Alphabet's (NASDAQ: GOOG)(NASDAQ: GOOGL) Google. The company expects that facility to be fully operational by early 2029. NextEra is also building new renewable energy, storage, and gas-fired power capacity to support other utilities and data center customers, including Google.

What sets NextEra Energy apart from other utilities is its data center hub strategy. Data center developers don't just need a lot of power; they require speed, certainty, and scalability, which align with NextEra's strengths. It's one of the few companies that can support these customers with a full suite of solutions, including renewables and battery storage, gas-fired generation, and potentially nuclear in the future.

The company is currently developing 30 potential data center hubs in the U.S. and anticipates that number will rise to 40 by year-end. NextEra's base case is that it will develop 15 GW of data center hubs by 2035, with an upside case of 30+ GW. It's currently working with Google to develop multiple data center campuses across the country. By working directly with Google, NextEra is helping a leading AI player build out crucial infrastructure. It's also working with ExxonMobil to develop a low-carbon, gas-fired data center power project.

An acquisition-driven boost

NextEra Energy is already a leader in the utility sector, making it a top player in the AI power race. However, it has grander ambitions. It agreed to combine with fellow utility Dominion Energy earlier this year to create the world's largest regulated electric utility business. The combined company would be the world leader in renewables and battery storage, the top U.S. player in gas generation, and the country's second-largest nuclear energy producer. It would also be a leader in total U.S. power generation and annual capital spending.

The combined company would have over 130 GW of large-load opportunities in its pipeline, more than double its current combined generation capacity (110 GW). That backlog would help support more than 9% compound annual earnings-per-share growth through 2035, with expectations of extending that pace through at least 2032. That's an acceleration from the more than 8% compound annual growth rate NextEra Energy currently expects to deliver as a stand-alone company, which is already faster than most other utilities.

The leader in AI power

NextEra Energy is the undisputed leader in AI power among utilities. It has a significant pipeline of large-load opportunities in Florida and the rest of the country. Meanwhile, it would become an even bigger player once it closes the Dominion Energy deal. Its combination of scale and growth makes it the top utility stock to buy to capitalize on the AI power boom.

Matt DiLallo has positions in Alphabet and NextEra Energy. The Motley Fool has positions in and recommends Alphabet and NextEra Energy. The Motley Fool recommends Dominion Energy. The Motley Fool has a disclosure policy.