3 Stocks to Buy if You Believe the AI Power Crunch Is Just Getting Started

Artificial intelligence (AI) is completely reshaping the energy landscape. Advanced server racks consume far more power than traditional servers, and AI data centers require enormous amounts of electricity. According to the International Energy Agency, data centers worldwide used about 415 terawatt-hours of electricity in 2024. That figure could climb to roughly 1,000 terawatt-hours by 2030.

Rapidly rising demand is only part of the story. The bigger challenge is how long it takes to build new energy infrastructure. AI data centers can be completed in approximately 18 to 24 months. The infrastructure needed to power it can take much longer to build.

Large natural gas turbines may require three to five years to commission, while high-voltage transmission lines can take six to 10 years. A new nuclear power facility can take more than a decade to build.

That timing mismatch creates a power shortage as technology companies race to expand their AI capacity. For investors, it presents compelling opportunities in companies like GE Vernova (NYSE: GEV), Constellation Energy (NASDAQ: CEG), and Quanta Services (NYSE: PWR). If you believe AI's power crunch is only getting started, these three stocks could be worth a closer look.

Image source: Getty Images.

GE Vernova's gas turbines are seeing strong demand, but that's not the only growth driver

GE Vernova is a massive player in power generation. The company manufactures gas turbines, which are increasingly being used by data centers in need of power. It also manufactures critical power-grid equipment, including large power transformers, switchgear, and high-voltage direct current systems. Overall, GE Vernova's power equipment helps supply up to one-quarter of the world's electricity.

GE Vernova's gas turbines are in extremely high demand. More data center operators and utility providers have turned to gas turbines for their ability to provide immediate power. They are seen as a "bridge power" solution while larger, heavy-duty power plants and grid infrastructure are built out.

In the second quarter, GE Vernova signed 20 gigawatts (GW) in new gas equipment agreements. Its gas turbines under contract now stand at a staggering 116 GW, and it projects it'll have 125 GW under contract by the end of the year. To keep pace with this demand, the company is expanding its gas turbine manufacturing output to 20 GW this year and up to 30 GW by 2030.

Gas turbines aren't the only thing driving GE Vernova's growth. The need to update and modernize the power grid is another powerful tailwind. In the second quarter, its electrification equipment backlog rose to $40.6 billion, up 69% year over year.

Its crucial role in global power generation makes GE Vernova a top stock to buy if you believe the AI power crunch is just getting underway.

Constellation Energy boasts a massive nuclear energy fleet

Constellation Energy operates as a merchant power producer and owns the United States' largest nuclear energy fleet. With 22 GW in nuclear capacity, Constellation has secured long-term power purchase agreements (PPAs) with hyperscalers Microsoft and Meta Platforms. It also recently secured a PPA with Walmart, the retailer's first-ever nuclear energy PPA.

The company's nuclear fleet operated at a 93% capacity factor in the second quarter. Because data centers need reliable, 24/7 baseload energy, having a high capacity factor is a crucial competitive advantage for Constellation. A high operational capacity also means it is getting the most from its nuclear assets.

Constellation closed its $21.8 billion acquisition of Calpine in January, adding another 23 GW of natural gas, geothermal, battery, and storage assets. This helps expand Constellation's market while providing it with complementary power to its nuclear fleet.

Given its merchant power business model, Constellation is another energy stock that benefits from the ongoing AI power crunch.

Quanta Services is seeing robust demand amid the energy infrastructure build-out

Quanta Services provides engineering, procurement, and construction services needed to build, update, and maintain the power grid. The company constructs high-voltage transmission lines, substation interconnections, and switchyards that transport bulk power to data centers. It also builds mechanical, electrical, and process infrastructure inside and outside data centers.

The company's large workforce and in-house training are key advantages. With its skilled workforce of electricians and other craft workers, Quanta can pivot across different end markets. Driven by robust demand for its services, Quanta added roughly 15,000 employees in the first half of this year.

Quanta's backlog hit a record $53.4 billion in the second quarter, and it has grown 21.5% since the end of 2025. On top of this, the company raised its revenue guidance to $39.5 billion at the midpoint and free cash flow to $2.25 billion.

If you're bullish on the growth of energy demand from AI data centers, Quanta Services will be a key player in building the power infrastructure we need.

Courtney Carlsen has positions in Constellation Energy, GE Vernova, Meta Platforms, and Microsoft. The Motley Fool has positions in and recommends Constellation Energy, GE Vernova, Meta Platforms, Microsoft, and Quanta Services. The Motley Fool has a disclosure policy.