NextEra Energy: How This Total Utility Powers the AI Revolution

When investors think about profiting from artificial intelligence, their minds typically jump to the companies building AI systems or the chip manufacturers supplying them. But there’s another critical piece of infrastructure that rarely makes headlines: the energy required to power it all. NextEra Energy represents a compelling opportunity for those seeking exposure to AI’s explosive growth through a less obvious angle—a major total utility company that’s already deeply embedded in meeting America’s surging energy demands.

As one of North America’s largest electric utilities, NextEra Energy operates a diverse energy portfolio spanning natural gas, nuclear, solar, and wind sources. This multi-pronged approach to power generation positions the company uniquely to capitalize on the unprecedented energy demands created by AI infrastructure expansion. The company has recently established strategic partnerships with major technology firms including Alphabet and Meta Platforms to power their data centers and support nuclear energy development initiatives across the United States.

The Total Utility Powering America’s AI Infrastructure

The scale of AI’s energy appetite is staggering. Nvidia’s CEO Jensen Huang has projected that global spending on AI infrastructure will reach $3 trillion to $4 trillion by the end of the decade—a dramatic increase from approximately $600 billion currently. Every dollar of that infrastructure investment requires reliable, consistent power supply. This represents an unprecedented opportunity for established energy providers capable of delivering at scale.

NextEra’s strategic positioning in this landscape is particularly noteworthy. The company has actively pursued partnerships to supply power for data centers—the physical backbone of AI operations—while simultaneously accelerating nuclear energy development to meet these future demands. Unlike companies purely dependent on traditional utility services, NextEra is actively shaping the energy infrastructure that the AI boom demands.

A Diversified Energy Portfolio Positioned for Growth

NextEra’s strength lies not in specialization but in diversity. The company’s mix of generation sources provides resilience and flexibility in an evolving energy landscape. Natural gas provides baseline power, while nuclear offers carbon-free, high-capacity output. Solar and wind installations demonstrate commitment to renewable energy—increasingly important to tech companies making sustainability commitments.

Historical performance suggests this model works. Over the trailing periods ending in late January 2026, NextEra delivered average annual returns of 27.35% over one year, 7.45% over three years, 3.3% over five years, 14.25% over ten years, and 14.72% over fifteen years. While returns have shown volatility year to year, many market observers expect sustained strong performance as energy demands from AI and other sources continue accelerating.

Financial Strength and Dividend Appeal

From a valuation perspective, NextEra Energy offers reasonable entry points for patient investors. The company’s forward price-to-earnings ratio recently stood at 21—below its five-year average of 23—while its price-to-sales ratio around 6.6 sits roughly in line with historical levels. With a market capitalization of $182 billion, NextEra maintains its status as the largest company in the utilities sector.

The dividend story adds another layer of appeal. The stock currently offers a dividend yield of 2.6%, supplementing capital appreciation potential with regular income. Notably, the dividend has been growing steadily: the annual payout reached $2.27 per share recently, up from $1.87 in 2023 and $1.25 in 2019. This consistent growth demonstrates management’s confidence in the company’s earnings trajectory and commitment to shareholders.

Valuation and Long-term Investment Case

For investors with a multi-year horizon, NextEra Energy presents an intriguing intersection of themes: exposure to AI’s infrastructure buildout, dividend income, and a defensible business model serving essential services. The valuation remains accessible compared to pure-play AI stocks, which have attracted considerable investor enthusiasm—sometimes to excess.

The broader utilities sector offers other options worth exploring, but NextEra’s scale, diversified energy mix, and active engagement with AI-driven energy demands position it as a particularly compelling total utility for the AI era. For those seeking exposure to artificial intelligence’s infrastructure requirements without betting everything on speculative growth stocks, this established energy provider warrants serious consideration in long-term portfolios.