Nextera Energy IncNextEra Energy is a major utility beneficiary of surging electricity demand from AI data centers, as highlighted by the article's focus on the power buildout.

US electricity demand is surging as hyperscalers sign long-term power purchase agreements for AI data centers, driving a generation and transmission build-out not seen since the 1970s. Three ETFs provide distinct exposures: the Utilities Select Sector SPDR Fund (XLU) concentrates 58% of assets in ten mega-caps, with NextEra Energy at 14%, and charges 0.08%. The Vanguard Utilities Index Fund (VPU) holds 75 utilities across market caps at a 0.09% expense ratio, offering broader diversification. The First Trust Utilities AlphaDEX Fund (FXU) uses factor screening and has returned 21% over the past year, but its 0.61% expense ratio is about seven times higher than the other two, making it more suitable as a satellite holding.
Nextera Energy IncNextEra Energy is a major utility beneficiary of surging electricity demand from AI data centers, as highlighted by the article's focus on the power buildout.