In the rapidly evolving artificial intelligence (AI) landscape, data centers are essential in supporting the expansion of AI-based applications, serving as the backbone of digital data processing and storage. The massive boom in data centers is fueling growth across industries, and primarily in the energy sector, as these massive AI computing hubs are a key catalyst behind forecasts for surging electricity demand.
As a result, utility companies like NiSource (NI) are among those expected to benefit significantly from data center growth. In a recent analyst note, brokerage firm Jefferies highlighted NiSource stock as a “data center darling,” and argued that the company is worthy of a premium valuation and due for a potential re-rating opportunity.
