Utility stocks have shown surprising strength recently, with the S&P 500 Electric Utilities Index ($UYBB) gaining nearly 20% in 2024. In previous years, the index was largely trading sideways.
The utilities sector’s strong performance comes during a major shift in the industry, driven by soaring demand from data centers and artificial intelligence (AI) infrastructure. Data centers alone are expected to add around 44 GW of demand by 2030.
