Key Takeaways:
- The increasing demand for artificial intelligence (AI) is driving a significant need for energy to power data centers.
- Nuclear power is a critical component of AI infrastructure, providing a clean and efficient source of energy.
- Constellation Energy, America’s largest carbon-free energy producer, is well-positioned to benefit from the growing demand for energy to power data centers.
- The company has partnered with Microsoft to resurrect a nuclear plant in Pennsylvania to power data centers.
- Constellation Energy offers a stable and steady growth opportunity for investors, with a dividend yield of 0.46% and a history of dividend growth.
Introduction to AI Infrastructure
The increasing demand for artificial intelligence (AI) is driving a significant need for energy to power data centers. As the article notes, "AI is an absolute glutton for electrons." The Guardian reported that OpenAI’s latest model, GPT-5, potentially consumes enough energy in one day to power 1.5 million American homes for a day. This highlights the massive energy requirements of AI and the need for a reliable and efficient source of power. As the article states, "The technology industry is well aware of that, which is why Constellation Energy, America’s largest carbon-free energy producer, has partnered with Microsoft to resurrect a nuclear plant in Pennsylvania for the express purpose of powering data centers."
The Importance of Nuclear Power
Nuclear power is a critical component of AI infrastructure, providing a clean and efficient source of energy. As the article notes, "Nuclear is efficient and comparatively clean, and can generate immense amounts of power." The Crane Clean Energy Center, which Constellation has partnered with Microsoft on, is expected to produce 835 megawatts of power at capacity for decades to come. This makes nuclear power an ideal solution for powering data centers, which require a reliable and constant source of energy. As the article states, "The technology industry is well aware of that, which is why Constellation Energy, America’s largest carbon-free energy producer, has partnered with Microsoft to resurrect a nuclear plant in Pennsylvania for the express purpose of powering data centers."
Constellation Energy’s Role in AI Infrastructure
Constellation Energy, America’s largest carbon-free energy producer, is well-positioned to benefit from the growing demand for energy to power data centers. The company has partnered with Microsoft to resurrect a nuclear plant in Pennsylvania, which will provide a clean and efficient source of energy for data centers. As the article notes, "Constellation is already reaping the benefits of the increase in demand for electricity driven by data centers." The company is anticipating an earnings per share (EPS) compound annual growth rate (CAGR) of 10% through to 2028, based on its year-end 2024 base.
Investing in Constellation Energy
Constellation Energy offers a stable and steady growth opportunity for investors. The company has achieved a revenue CAGR of 6.75% over the past five years and operates at a net income margin of 11%. Its levered free cash flow margin is sitting at 12.3%, and it pays a dividend that yields 0.46% at current prices. As the article notes, "Adding a nuclear power stock like Constellation to your AI portfolio can add stability. Energy is a critical part of AI infrastructure that often gets overlooked." The company has also grown its dividend in each of the past three years running, making it an attractive option for income-seeking investors.
Government Support for Nuclear Energy
The U.S. government also recognizes the importance of nuclear energy in meeting the country’s energy needs. The Department of Energy has set a goal to triple the country’s nuclear output by 2050. As the article notes, "The U.S. government also thinks that nuclear will be vital moving forward, and the Department of Energy has set a goal to triple the country’s nuclear output by 2050." This government support is likely to benefit Constellation Energy, as America’s largest nuclear energy provider. As the article states, "Constellation, as America’s largest nuclear energy provider, is likely to benefit from government investment in America’s atomic output."
Conclusion
In conclusion, the increasing demand for AI is driving a significant need for energy to power data centers. Nuclear power is a critical component of AI infrastructure, providing a clean and efficient source of energy. Constellation Energy, America’s largest carbon-free energy producer, is well-positioned to benefit from the growing demand for energy to power data centers. The company offers a stable and steady growth opportunity for investors, with a dividend yield of 0.46% and a history of dividend growth. As the article notes, "So if you’re looking to add some stability to your AI portfolio, go stargazing and look at Constellation."
https://www.fool.com/investing/2026/01/11/artificial-intelligence-ai-infrastructure-stock/