Tech Giants Boost Data Center Investments
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 hours ago
0mins
Should l Buy XOM?
Source: Fool
- Capex Surge: Alphabet is nearly doubling its capex plans for 2026 to between $175 billion and $185 billion, while Meta is increasing its capex by 73% this year to between $115 billion and $135 billion, indicating strong demand for cloud computing and AI from major tech firms.
- Rising Power Demand: NextEra Energy originated 13.5 gigawatts of new generation and battery storage projects last year, its best year ever, and expects to develop 30 gigawatts of projects in the coming years, with a significant portion aimed at meeting data center power needs, highlighting the sector's demand surge.
- Collaborative Data Center Development: NextEra is partnering with Alphabet's Google to develop multiple gigawatt-scale data center campuses and plans to restart the dormant Duane Arnold nuclear power plant in Iowa to meet Google's 3.5 gigawatts power requirement, which will accelerate data center construction.
- Future Growth Expectations: NextEra aims to bring 15 gigawatts of new generation online for data center hubs by 2035, with the CEO expressing a desire to double this goal to 30 gigawatts, which will strongly support the company's future earnings and dividend growth prospects.
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Analyst Views on XOM
Wall Street analysts forecast XOM stock price to fall
19 Analyst Rating
12 Buy
7 Hold
0 Sell
Moderate Buy
Current: 148.450
Low
114.00
Averages
132.17
High
158.00
Current: 148.450
Low
114.00
Averages
132.17
High
158.00
About XOM
Exxon Mobil Corporation is an energy provider and chemical manufacturer. The Company’s principal business involves exploration for, and production of, crude oil and natural gas; the manufacture, trade, transport and sale of crude oil, natural gas, petroleum products, petrochemicals and a wide variety of specialty products; and pursuit of lower-emission and other new business opportunities, including carbon capture and storage, hydrogen, lower-emission fuels, Proxxima systems, carbon materials, and lithium. Its Upstream segment explores for and produces crude oil and natural gas. The Energy Products, Chemical Products, and Specialty Products segments manufacture and sell petroleum products and petrochemicals. Energy Products segment includes fuels, aromatics, and catalysts and licensing. Chemical Products segment consists of olefins, polyolefins, and intermediates. Specialty Products segment includes finished lubricants, basestocks and waxes, synthetics, and elastomers and resins.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Exxon Mobil Accelerates Natural Gas Development in Guyana
- Commitment to Gas Development: Dan Ammann, head of upstream at Exxon Mobil, stated at the Guyana Energy Conference that the company is committed to rapidly developing natural gas projects to meet the Guyanese government's requests for petrochemical plants and data centers, highlighting the importance of the region's energy market.
- Project Complexity: Ammann noted that natural gas projects are more complex than oil projects, requiring cooperation with multiple entities such as public utilities, communities, and regulators, a strategy that will enhance project feasibility and success rates.
- Pipeline Ready: He emphasized that the pipeline is ready to deliver gas to Guyana, and the company is awaiting the completion of power plants this year, which will lay the groundwork for subsequent energy development.
- Legal Compliance Issues: Meanwhile, the Federal Court of Australia imposed a A$16 million (approximately US$11.3 million) fine on Exxon Mobil for misleading claims about fuel sold in Queensland, indicating challenges the company faces in compliance that could affect its brand image and market trust.
See More
Trump Calls Iran a 'Tough Negotiator' Amid Nuclear Talks
- Nuclear Negotiation Progress: Trump referred to Iran as a 'tough negotiator' aboard Air Force One, indicating his indirect involvement in the upcoming Geneva talks, which underscores the U.S. commitment to the Iran nuclear deal and may pave the way for future diplomatic relations.
- Consensus on Principles: The second round of U.S.-Iran nuclear negotiations concluded with both sides reportedly agreeing on guiding principles for a potential deal, with Iranian Foreign Minister Abbas Araghchi describing the atmosphere as constructive, although he cautioned that the process will take time, suggesting a hopeful outlook for negotiations.
- Oil Price Volatility: Following the news, Brent crude fell 2.3% to $67 and WTI dropped 1.3% to $62, reflecting market sensitivity to potential agreements, as a successful deal could lower oil prices by $5, while a breakdown could spike them by $5 to $10, indicating significant market implications.
- Strait of Hormuz Tensions: Iran's Revolutionary Guard conducted drills in the Strait of Hormuz, temporarily closing parts of the waterway and firing live missiles, marking the first such closure since tensions with Washington escalated, highlighting the complex regional dynamics that could impact global oil transit.
See More
Tech Giants Boost Data Center Investments
- Capex Surge: Alphabet is nearly doubling its capex plans for 2026 to between $175 billion and $185 billion, while Meta is increasing its capex by 73% this year to between $115 billion and $135 billion, indicating strong demand for cloud computing and AI from major tech firms.
- Rising Power Demand: NextEra Energy originated 13.5 gigawatts of new generation and battery storage projects last year, its best year ever, and expects to develop 30 gigawatts of projects in the coming years, with a significant portion aimed at meeting data center power needs, highlighting the sector's demand surge.
- Collaborative Data Center Development: NextEra is partnering with Alphabet's Google to develop multiple gigawatt-scale data center campuses and plans to restart the dormant Duane Arnold nuclear power plant in Iowa to meet Google's 3.5 gigawatts power requirement, which will accelerate data center construction.
- Future Growth Expectations: NextEra aims to bring 15 gigawatts of new generation online for data center hubs by 2035, with the CEO expressing a desire to double this goal to 30 gigawatts, which will strongly support the company's future earnings and dividend growth prospects.
See More
Energy Stocks Rally Despite Stagnant Oil Prices
- Earnings Resilience: Integrated energy firms maintain profitability through diversified revenue streams, particularly in refining and chemicals, which insulates their balance sheets from oil price fluctuations, thereby reassuring investors and creating a compelling investment case even when oil prices remain stagnant.
- Investor Rotation: As investors shift capital from technology stocks to sectors with strong free cash flow and attractive dividends, energy stocks are favored for their high dividend yields and share buyback programs, driving demand for shares independent of oil price movements.
- Geopolitical Risks: While current oil prices are not driven by geopolitical factors, market concerns over supply disruptions from regions like the Middle East and Russia add a risk premium to energy equities, with investors willing to assign higher value to companies that could benefit from unexpected supply tightening.
- Technical Strength and Market Sentiment: Many market participants view energy equities as a hedge against inflation, and although commodity prices do not provide immediate catalysts, this sentiment creates a feedback loop that supports stock prices, reinforcing the rally in energy stocks.
See More
Exxon Mobil to Speak at Morgan Stanley Energy Conference
- Executive Speaking Engagement: Exxon Mobil's Senior Vice President Jack Williams is scheduled to conduct a fireside chat at the Morgan Stanley Energy & Power Conference on March 3, 2026, at 11:00 AM ET, where he is expected to discuss the company's strategies and outlook in energy transition, potentially boosting investor confidence.
- Live Webcast Access: The event will feature a live webcast accessible to investors via the event page, with an audio recording available on ExxonMobil's website approximately 24 hours post-event, ensuring transparency and accessibility of information.
- Company Background Overview: ExxonMobil is one of the largest publicly traded international energy and petrochemical companies, focused on providing solutions that enhance quality of life, with primary businesses in upstream, product solutions, and low carbon solutions, covering energy, chemicals, and lubricants.
- Emission Reduction Commitment: In 2021, ExxonMobil announced plans to reduce greenhouse gas emissions by 2030, targeting a 20-30% reduction in corporate-wide greenhouse gas intensity, a 40-50% reduction in upstream operations, a 70-80% reduction in methane intensity, and a 60-70% reduction in flaring intensity, demonstrating the company's proactive stance on climate change.
See More
Rising Energy Demand Boosts Fossil Fuel Outlook
- Fossil Fuel Demand Surge: Soaring energy demands from data centers and a modernizing global economy are expected to boost fossil fuel demand, with rising natural gas exports anticipated to provide stable revenue streams for energy companies despite renewable energy growth.
- Chevron's Reliable Dividends: Chevron (CVX) has increased its dividend for 37 consecutive years, currently yielding 3.7%, and expects a 10% annual growth in free cash flow over the next five years, bolstered by its $55 billion acquisition of Hess to enhance its resource base in Guyana.
- Enbridge's Steady Performance: Enbridge (ENB) has raised its dividend for 28 years, with a current yield of 5% and a responsible payout ratio of 66%, ensuring stable cash flow from its oil and gas transportation and utility operations across North America.
- ExxonMobil's Growth Potential: ExxonMobil (XOM) has raised its dividend for 42 years, currently yielding 2.8%, and has invested $59.5 billion in acquiring Pioneer Natural Resources, doubling its land assets in the Permian Basin, indicating a strong outlook for future dividend increases.
See More
Exxon Mobil Accelerates Natural Gas Development in Guyana
- Commitment to Gas Development: Dan Ammann, head of upstream at Exxon Mobil, stated at the Guyana Energy Conference that the company is committed to rapidly developing natural gas projects to meet the Guyanese government's requests for petrochemical plants and data centers, highlighting the importance of the region's energy market.
- Project Complexity: Ammann noted that natural gas projects are more complex than oil projects, requiring cooperation with multiple entities such as public utilities, communities, and regulators, a strategy that will enhance project feasibility and success rates.
- Pipeline Ready: He emphasized that the pipeline is ready to deliver gas to Guyana, and the company is awaiting the completion of power plants this year, which will lay the groundwork for subsequent energy development.
- Legal Compliance Issues: Meanwhile, the Federal Court of Australia imposed a A$16 million (approximately US$11.3 million) fine on Exxon Mobil for misleading claims about fuel sold in Queensland, indicating challenges the company faces in compliance that could affect its brand image and market trust.
See More
Trump Calls Iran a 'Tough Negotiator' Amid Nuclear Talks
- Nuclear Negotiation Progress: Trump referred to Iran as a 'tough negotiator' aboard Air Force One, indicating his indirect involvement in the upcoming Geneva talks, which underscores the U.S. commitment to the Iran nuclear deal and may pave the way for future diplomatic relations.
- Consensus on Principles: The second round of U.S.-Iran nuclear negotiations concluded with both sides reportedly agreeing on guiding principles for a potential deal, with Iranian Foreign Minister Abbas Araghchi describing the atmosphere as constructive, although he cautioned that the process will take time, suggesting a hopeful outlook for negotiations.
- Oil Price Volatility: Following the news, Brent crude fell 2.3% to $67 and WTI dropped 1.3% to $62, reflecting market sensitivity to potential agreements, as a successful deal could lower oil prices by $5, while a breakdown could spike them by $5 to $10, indicating significant market implications.
- Strait of Hormuz Tensions: Iran's Revolutionary Guard conducted drills in the Strait of Hormuz, temporarily closing parts of the waterway and firing live missiles, marking the first such closure since tensions with Washington escalated, highlighting the complex regional dynamics that could impact global oil transit.
See More
Tech Giants Boost Data Center Investments
- Capex Surge: Alphabet is nearly doubling its capex plans for 2026 to between $175 billion and $185 billion, while Meta is increasing its capex by 73% this year to between $115 billion and $135 billion, indicating strong demand for cloud computing and AI from major tech firms.
- Rising Power Demand: NextEra Energy originated 13.5 gigawatts of new generation and battery storage projects last year, its best year ever, and expects to develop 30 gigawatts of projects in the coming years, with a significant portion aimed at meeting data center power needs, highlighting the sector's demand surge.
- Collaborative Data Center Development: NextEra is partnering with Alphabet's Google to develop multiple gigawatt-scale data center campuses and plans to restart the dormant Duane Arnold nuclear power plant in Iowa to meet Google's 3.5 gigawatts power requirement, which will accelerate data center construction.
- Future Growth Expectations: NextEra aims to bring 15 gigawatts of new generation online for data center hubs by 2035, with the CEO expressing a desire to double this goal to 30 gigawatts, which will strongly support the company's future earnings and dividend growth prospects.
See More
Energy Stocks Rally Despite Stagnant Oil Prices
- Earnings Resilience: Integrated energy firms maintain profitability through diversified revenue streams, particularly in refining and chemicals, which insulates their balance sheets from oil price fluctuations, thereby reassuring investors and creating a compelling investment case even when oil prices remain stagnant.
- Investor Rotation: As investors shift capital from technology stocks to sectors with strong free cash flow and attractive dividends, energy stocks are favored for their high dividend yields and share buyback programs, driving demand for shares independent of oil price movements.
- Geopolitical Risks: While current oil prices are not driven by geopolitical factors, market concerns over supply disruptions from regions like the Middle East and Russia add a risk premium to energy equities, with investors willing to assign higher value to companies that could benefit from unexpected supply tightening.
- Technical Strength and Market Sentiment: Many market participants view energy equities as a hedge against inflation, and although commodity prices do not provide immediate catalysts, this sentiment creates a feedback loop that supports stock prices, reinforcing the rally in energy stocks.
See More
Exxon Mobil to Speak at Morgan Stanley Energy Conference
- Executive Speaking Engagement: Exxon Mobil's Senior Vice President Jack Williams is scheduled to conduct a fireside chat at the Morgan Stanley Energy & Power Conference on March 3, 2026, at 11:00 AM ET, where he is expected to discuss the company's strategies and outlook in energy transition, potentially boosting investor confidence.
- Live Webcast Access: The event will feature a live webcast accessible to investors via the event page, with an audio recording available on ExxonMobil's website approximately 24 hours post-event, ensuring transparency and accessibility of information.
- Company Background Overview: ExxonMobil is one of the largest publicly traded international energy and petrochemical companies, focused on providing solutions that enhance quality of life, with primary businesses in upstream, product solutions, and low carbon solutions, covering energy, chemicals, and lubricants.
- Emission Reduction Commitment: In 2021, ExxonMobil announced plans to reduce greenhouse gas emissions by 2030, targeting a 20-30% reduction in corporate-wide greenhouse gas intensity, a 40-50% reduction in upstream operations, a 70-80% reduction in methane intensity, and a 60-70% reduction in flaring intensity, demonstrating the company's proactive stance on climate change.
See More
Rising Energy Demand Boosts Fossil Fuel Outlook
- Fossil Fuel Demand Surge: Soaring energy demands from data centers and a modernizing global economy are expected to boost fossil fuel demand, with rising natural gas exports anticipated to provide stable revenue streams for energy companies despite renewable energy growth.
- Chevron's Reliable Dividends: Chevron (CVX) has increased its dividend for 37 consecutive years, currently yielding 3.7%, and expects a 10% annual growth in free cash flow over the next five years, bolstered by its $55 billion acquisition of Hess to enhance its resource base in Guyana.
- Enbridge's Steady Performance: Enbridge (ENB) has raised its dividend for 28 years, with a current yield of 5% and a responsible payout ratio of 66%, ensuring stable cash flow from its oil and gas transportation and utility operations across North America.
- ExxonMobil's Growth Potential: ExxonMobil (XOM) has raised its dividend for 42 years, currently yielding 2.8%, and has invested $59.5 billion in acquiring Pioneer Natural Resources, doubling its land assets in the Permian Basin, indicating a strong outlook for future dividend increases.
See More
