Energy Stocks Worth Looking Into for the Data Center Power Boom

The AI-driven data center boom is reshaping U.S. energy demand, with hyperscalers (Microsoft, Meta, Google, Amazon, Oracle, and others) pouring hundreds of billions into new facilities that require massive, reliable, 24/7 power. Natural gas—via pipelines, turbines, onsite generation, and supporting equipment—is emerging as a critical bridge fuel due to its dispatchability, speed of deployment, and abundance in the U.S.Texas remains the epicenter, with ERCOT projecting power demand could nearly double by 2032 (approaching 368 GW), driven largely by AI data centers. Virginia (“Data Center Alley” in Northern Virginia) hosts the world’s highest concentration of data centers and is seeing explosive load growth under Dominion Energy. Other regions are following suit, but Texas and Virginia highlight the clearest opportunities in natural gas infrastructure, generation, and equipment.

Here’s an expanded look at key energy stocks positioned for this boom, starting with the five highlighted in a recent OilPrice.com analysis and broadening to include Virginia plays, midstream/pipelines, turbines, and equipment providers. All data draws from recent earnings reports and public filings as of mid-2026.

Texas Power Play Stocks (Original OilPrice Five, Updated)

1. Vistra Corp. (NYSE: VST)
Vistra is the largest competitive generator in Texas with ~44 GW capacity. It has secured major deals, including 20-year PPAs with Meta (over 2,600 MW nuclear) and another nuclear supply agreement tied to Comanche Peak. It closed the $4.7 billion Cogentrix acquisition (adding 5.5 GW gas). It is in active talks with data center developers.

Latest Earnings (Q1 2026, reported May 7, 2026): GAAP net income $1.029 billion (vs. loss prior year); Ongoing Operations Adjusted EBITDA $1.494 billion (up ~20% YoY in some metrics). Reaffirmed full-year 2026 guidance: Adj. EBITDA $6.8–7.6 billion; Adj. FCFbG $3.925–4.725 billion. Strong positioning in ERCOT load growth.

Stock: Volatile but strong performer on data center narrative (recent trading levels in the mid-$140s range amid broader sector momentum).

2. NRG Energy (NYSE: NRG)
NRG doubled capacity to ~25 GW via the $12 billion LS Power acquisition. It signed a 295 MW supply deal for two Texas data centers (expandable to 1 GW) and partnered with GE Vernova and TIC on up to 5.4 GW new gas generation. It raised 2026 core profit guidance and secured financing for new plants.

Latest Earnings (Q1 2026, reported May 6, 2026): Adjusted EPS $1.49 (modest miss vs. estimates but backed by operational strength). Reaffirmed/updated 2026 guidance with confidence in growth.

Stock: Trading around $136–137 (as of early July 2026 closes).

3. Energy Transfer LP (NYSE: ET)
A major midstream player directly supplying natural gas to data centers (e.g., Oracle near Abilene up to 900 MMcf/d; CloudBurst in San Marcos; Fermi America’s HyperGrid). It has inked agreements for over 6 Bcf/d in new demand-pool volumes and pays an attractive ~7% distribution yield.

Latest Earnings (Q1 2026): Revenue $27.77 billion (+32% YoY) on record volumes across NGL, crude, and gathering. New data center gas supply deals announced (e.g., Nexus Hubbard AI campus in Texas).

Stock: Trading around $19.28 range recently; solid midstream stability with data center tailwinds.

4.CenterPoint Energy (NYSE: CNP)

CenterPoint serves the Houston area with 12.2 GW of firmly committed new industrial load (up sharply). It expects to energize 8 GW of data center load by 2029 and runs a massive $65.5 billion, 10-year capital plan tied to regulated growth (projected 7–9% annual earnings growth).

Latest Earnings (Q1 2026, reported April 23, 2026): EPS $0.56 (slight miss vs. ~$0.58 estimates) but revenue beat at $2.98 billion. Strong commentary on accelerating Houston load growth from data centers and industrials.

Stock: Trading around $44.60 (as of early July 2026); attractive regulated utility yield.

5. Fermi Inc. (NASDAQ: FRMI)
Pre-revenue developer (co-founded by Rick Perry) building an 11 GW grid-independent HyperGrid campus outside Amarillo (scaling to 17 GW by 2038). It has gas supply deals with Energy Transfer. IPO raised ~$785 million; stock remains volatile.

Latest Earnings (Q1 2026): Net loss ~$189 million ($0.30/share), largely non-cash (share-based comp, etc.); heavy capex on development.

Stock: Highly volatile; trading around $8 (as of early July 2026) after earlier swings from IPO highs.Virginia & Broader Data Center Expansion Plays

Dominion Energy (NYSE: D) — Key Virginia Utility
Northern Virginia has the world’s highest concentration of data centers. Dominion reports >50 GW of data center capacity in various contracting stages (10.4 GW under executed agreements). It is advancing natural gas plants (e.g., Chesterfield Energy Reliability Center) alongside other sources to meet demand while navigating state clean energy goals.

Latest Earnings (Q1 2026, reported May 1, 2026): Operating EPS $0.95 (beat estimates); revenue $5.02 billion (+23% YoY). Affirmed full-year 2026 operating EPS guidance $3.45–3.69.

Stock: Trading around $69–70 (as of early July 2026); solid dividend yield ~3.8%.Natural Gas Pipelines & MidstreamWilliams Companies (NYSE: WMB)
Expanding into behind-the-meter gas-fired power plants and modular generation directly for data centers (multi-billion “Power Innovation” portfolio). Strong pipeline infrastructure serving growing demand.

GE Vernova (NYSE: GEV) — Natural Gas Turbines & Grid Equipment
Leader in gas turbines, seeing explosive order growth from data centers and power plants. Q1 2026: Orders +71% to $18.3 billion; Electrification data center orders $2.4 billion (more than all of 2025). Gas Power backlog/slot reservations reached 100 GW (targeting 110+ GW by year-end). Raised 2026 guidance significantly.

Power Generation Equipment

Caterpillar (NYSE: CAT) — Engines, Generators & Turbines

The Power & Energy segment is benefiting enormously from data center prime power demand (large reciprocating engines and turbines). Q1 2026 sales/revenue $17.4 billion (+22% YoY); adjusted EPS $5.54 (beat). Power generation sales surged; record $63 billion backlog. Raised full-year 2026 guidance to low double-digit growth; power generation expected to nearly triple by 2030 from 2024 levels.

Key Themes & Other Considerations

Natural gas role: Supplies over 40% of U.S. data center electricity currently and is expected to grow significantly as a reliable baseload/peaker complement to renewables and nuclear. On-site generation (gas turbines, reciprocating engines, fuel cells) helps bypass grid delays.

Hyperscaler capex: Tech giants’ combined spending is in the hundreds of billions annually, directly fueling energy infrastructure demand.
Risks: Regulatory hurdles, project delays, community opposition, turbine/equipment supply chain constraints, and potential overbuild if some speculative data center projects fail to materialize. ERCOT and others have noted uncertainties.
Broader plays: Other midstream names (e.g., Kinder Morgan) and infrastructure contractors may also benefit indirectly.

Investment Takeaway

The data center power boom is not speculative hype—it is backed by signed contracts, record backlogs, raised guidance, and accelerating load forecasts in Texas and Virginia. Stocks with direct exposure to natural gas supply (pipelines like ET and WMB), generation (VST, NRG, D), turbines/equipment (GEV, CAT), and onsite solutions stand to benefit most in the near-to-medium term.

Investors should monitor upcoming earnings (e.g., ET in August, others in the coming weeks), ERCOT/PJM load forecasts, hyperscaler capex updates, and regulatory developments in key states. This theme blends growth with some defensive, regulated cash flows and attractive yields in select names.

Disclaimer: This is not financial advice. Conduct your own due diligence; stock prices and fundamentals change rapidly. Past performance is no guarantee of future results.