According to Mizuho, the entities that will benefit the most in the long run as artificial intelligence increases the demand for energy in the United States.

According to Mizuho Securities, the energy consumption of data centers is projected to surge threefold by 2030 due to the rapid expansion of artificial intelligence, which will significantly boost the demand for renewable energy and natural gas. By the end of the decade, data centers are expected to consume 400 terawatt hours annually, equating to 50 gigawatts, and will account for approximately 9% of the total electricity demand in the U.S., as detailed in a recent 38-page report from Mizuho. Currently, about 30% of data center energy usage is concentrated in the mid-Atlantic region, with Texas following at 13%.

The technology sector’s commitment to climate goals is anticipated to drive substantial growth in renewable energy, with solar power demand increasing by 7 gigawatts annually and wind power by 5 gigawatts each year through 2030. This growth represents a 21% and 39% increase for solar and wind, respectively, over Mizuho’s existing forecasts. Companies like Nextracker and Array, which produce solar trackers, are expected to benefit significantly due to their ability to scale production efficiently. Nextracker could see its stock price rise by $4 to a target of $59 per share, assuming it maintains a 45% market share in the U.S., while Array could see a $2 increase to a target of $13 per share.

In contrast, solar module manufacturers such as First Solar may not see significant stock movement until the outcome of the November presidential election clarifies the future of the Inflation Reduction Act (IRA). If the IRA remains, First Solar could face increased competition but might still see a $17 increase to a target of $274 per share.

Natural gas demand is also expected to rise, potentially increasing by up to 4 billion cubic feet per day by 2030, which is 4% of current U.S. production. If renewable energy expansion lags, gas demand could double to 8 billion cubic feet per day. Natural gas will primarily serve as a backup to renewable energy, especially during periods of low solar and wind output and in regions without nearby renewable energy plants. Key beneficiaries of this increased demand include gas producers like EQT Corp., which supply major data center markets in the mid-Atlantic and Southeast, and pipeline operators such as Williams Companies and Kinder Morgan, who benefit from their established infrastructure.

Independent power producers like Constellation Energy could also gain if they secure agreements to supply data centers with nuclear power. Despite the optimism surrounding AI-driven power demand, Mizuho analysts warn of potential challenges, including lengthy approval processes for new power projects and possible delays in renewable investments if a new administration alters the IRA or imposes higher import tariffs.