3 Energy Stocks Yielding Over 4.5% to Cash in on the AI Power Boom
Yahoo Finance ·
Elon Musk is known for making bold statements. For example, the two data centers he's setting up in Tennessee are called Colossus I and Colossus II. What's notable for energy investors is that these artificial intelligence-focused data centers are powered by natural gas, much to the ire of nearby residents due to the gas turbines' noise and pollution concerns. But the power has to come from somewhere, which is why investors will likely find high-yield midstream giants like Enterprise Products Partners ( EPD -0.26% ) and Enbridge ( ENB +0.77% ) of interest. However, even if you don't want to invest in carbon fuels, you can still find high-yield options like Brookfield Renewable Partners ( BEP +0.15% ) . It is already working to support Microsoft 's and Alphabet 's AI data centers. The best part, all three have yields well over 4.5%. Between 2005 and 2025, electricity demand increased by 10%. Between 2025 and 2045, however, demand is projected to increase by 60%. That's a step change in demand driven by a shift toward electricity as a power source and, at the same time, new technology, including electric cars and artificial intelligence (AI) . Meeting that demand won't be easy, and it is already causing problems for the AI industry. One of the quickest ways to develop new power sources is through natural gas turbines. There are drawbacks, as Mississippi residents are aware, since the off-grid power plants for one of Musk's Tennessee AI data centers are located there. Still, when it needed power fast, Space Exploration Corporation ( SPCX -2.68% ) did what it needed to do. And the U.S. government appears to be supporting the company's move to use natural gas turbines despite local pushback.
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