The Energy Transition in 5 Numbers: Where Solar, Nuclear, and Gas Stand Heading Into 2027

Energy is having a moment. As countries decarbonize, artificial intelligence (AI) data centers consume more power, manufacturing returns home, and the grid electrifies, demand for reliable energy is surging. This has put energy and utility stocks, traditionally viewed as boring, slow-growth dividend plays, at the center of a critical bottleneck for hyperscalers and the broader economy.

With the energy transition underway, here are five numbers that reveal where solar, nuclear, and natural gas stand heading into 2027.

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1. Global energy demand is set to grow 3.8% in 2027

According to the International Energy Agency (IEA), electricity demand is projected to grow 3.8% globally next year, above the 10-year average growth rate of 2.7%.

Rising demand from AI data centers, which require significantly more power per server rack than before, is driving this strong growth. Additionally, increasing industrial activity and rising EV adoption are placing greater strain on the grid.

2. Solar power will add 600 TWh of output next year

The IEA says low-emissions energy sources are growing so quickly that they can meet global demand growth through 2027. Solar power is driving this growth, projected to add 600 TWh (terawatt-hours) of output annually through 2027.

According to the U.S. Energy Information Administration (EIA), solar power will lead U.S. electricity generation growth, thanks to strong growth in ERCOT (Texas), CAISO (California), and MISO (which covers 15 states across the Midwest and South). EIA projects ERCOT will add 13 TWh and MISO will add 11 TWh of solar production by 2027.

For investors seeking exposure to the growing use of solar energy, NextEra Energy (NYSE: NEE) is a massive regulated utility company that has aggressively expanded its solar capacity and boasts the largest fleet of renewable assets in North America.

3. Nuclear capacity is coming online with two plant restarts in the U.S.

While many investors are intrigued by advanced nuclear reactors, such as small modular reactors (SMRs) and microreactors, new nuclear capacity coming online in 2027 will largely come from fleet restarts and uprates.

Next year, two decommissioned nuclear reactors will come back online: the Palisades Nuclear Plant in Michigan and the Crane Clean Energy Center (formerly Three Mile Island Unit 1) in Pennsylvania.

Privately held Holtec owns and operates Palisades, while Constellation Energy (NASDAQ: CEG) owns and operates the Crane Clean Energy Center, which is backed by a 20-year power purchase agreement with Microsoft.

Constellation Energy, the largest nuclear fleet operator in the U.S., also has projects to increase nuclear capacity at plants in Illinois and Pennsylvania. Southern Company (NYSE: SO) is another utility with uprate plans at its Hatch and Vogtle plants in Georgia.

4. Slow grid interconnection times could require 48 GW of natural gas capacity by 2035

While not as clean-burning as nuclear or solar power, natural gas is another vital fuel driving the energy transition. Many view natural gas as a "bridge fuel" because it is an efficient power source with lower emissions than fossil fuels like coal, helping meet energy needs while renewable and nuclear infrastructure scales up.

According to BloombergNEF, grid delays and slow connection times could mean 48 GW of natural gas generation must come online by 2035 to meet growing data center power demand. Power equipment manufacturers like GE Vernova (NYSE: GEV) and Bloom Energy (NYSE: BE) are seeing historic demand for their natural-gas-fired equipment.

5. Data center energy demand will roughly double by 2030

Power demand is expected to keep growing well into the future. According to the IEA, global data center energy consumption could roughly double to 945 TWh by 2030, and grow to 1,200 TWh by 2035. On top of this, reshoring manufacturing to the U.S. and Europe is expected to further increase energy demand.

Energy is the lifeblood of the economy and has become increasingly central to the global financial system for several reasons. As countries lower emissions and meet growing demand, investors should expect more solar power, natural gas turbines, and nuclear uprates and plant restarts in 2027 and beyond.

Courtney Carlsen has positions in Bloom Energy, Constellation Energy, GE Vernova, and Microsoft. The Motley Fool has positions in and recommends Bloom Energy, Constellation Energy, GE Vernova, Microsoft, and NextEra Energy. The Motley Fool has a disclosure policy.