Top Data Center Power Stocks for Investors
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 08 2026
0mins
Source: seekingalpha
- Surging Nuclear Demand: The projected surge in AI data center energy demand positions nuclear energy producers like Constellation Energy Group (CEG) and Duke Energy (DUK) as prime long-term investment choices, especially with U.S. government backing aiming to triple nuclear power generation.
- Electricity Consumption Surge: Goldman Sachs forecasts U.S. data center electricity consumption will soar from 4% in 2023 to 10% by 2030, translating to a jump from approximately 200 TWh to 500 TWh, creating a reliability gap that only a few companies can bridge.
- Midstream Infrastructure Opportunities: Energy Transfer (ET) is aggressively capitalizing on this trend, having signed long-term contracts for over 6 billion cubic feet per day of pipeline capacity in the past year, with over 40 data center connection requests, and is expected to achieve a 1.8x coverage ratio by 2025, offering a secure 7.2% yield.
- Xcel Energy Investment Plan: Xcel Energy (XEL) is planning a $60 billion base capital investment from 2026 to 2030, up from $45 billion for 2025 to 2029, which is expected to drive 9% annual ongoing EPS growth over the next several years while providing a secure nearly 3% dividend yield.
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Analyst Views on ET
Wall Street analysts forecast ET stock price to rise
11 Analyst Rating
7 Buy
4 Hold
0 Sell
Moderate Buy
Current: 18.930
Low
17.00
Averages
20.65
High
23.00
Current: 18.930
Low
17.00
Averages
20.65
High
23.00
About ET
Energy Transfer LP owns and operates a diversified portfolios of energy assets in the United States, with more than 140,000 miles of pipeline and associated energy infrastructure. The Company’s strategic network spans 44 states with assets in all of the major United States production basins. Its core operations include complementary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquids (NGL) and refined product transportation and terminalling assets; and NGL fractionation. The Company’s segments include intrastate transportation and storage, interstate transportation and storage, midstream, NGL and refined products transportation and services, crude oil transportation and services, investment in Sunoco LP, investment in USA Compression Partners, LP (USAC), and all other. It also owns Lake Charles LNG Company, LLC, its wholly owned subsidiary, which owns an LNG import terminal and regasification facility.
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.
Surging Oil Prices Boost Energy Companies
- Impact of Rising Oil Prices: The intensification of the Middle East conflict has led to a surge in oil prices over the past month, which, while increasing production and logistics costs, has created strong tailwinds for major oil and energy companies, enhancing their profitability.
- ExxonMobil's Growth Potential: ExxonMobil is expected to see its earnings per share (EPS) grow at a 14% CAGR from 2025 to 2028, primarily driven by expansions in the Permian Basin and Guyana, showcasing its robust growth potential in a high oil price environment.
- Energy Transfer as a Safe Investment: Energy Transfer, as a midstream pipeline company, offers an attractive 7% forward yield and has raised its distributions annually for the past five years, demonstrating stability and growth potential amid rising oil prices.
- Future Outlook: As oil prices rise, major oil companies like ExxonMobil and Chevron will ramp up production, which will drive growth in cash flow and earnings per unit (EPU) for midstream firms like Energy Transfer, with EPU expected to grow at a 12% CAGR from 2025 to 2028.
See More
Investment Opportunities in ExxonMobil and Energy Transfer
- Profit Boost from Rising Oil Prices: Oil prices have surged over the past month due to escalating Middle East conflicts, benefiting ExxonMobil's upstream profits, which are expected to enhance cash flow for dividends and buybacks, thereby solidifying its position in the energy market.
- Stable Dividend Growth: ExxonMobil has raised its dividend for 43 consecutive years, currently offering a forward yield of 2.6%, making it a safe choice for investors looking to increase exposure amid rising oil prices, appealing to those seeking stable returns.
- Growth Potential of Energy Transfer: Energy Transfer has rapidly expanded over the past few years, now operating over 140,000 miles of pipeline with a forward yield of 7%, and has increased distributions annually for five consecutive years, showcasing strong performance in the midstream market.
- Future Earnings Expectations: Analysts project ExxonMobil's earnings per share (EPS) to grow at a 14% CAGR from 2025 to 2028, primarily driven by expansions in the Permian Basin and Guyana, further enhancing its long-term investment appeal.
See More
NASDAQ 100 After Hours Update
- After Hours Overview: The NASDAQ 100 index is down 9.83 points to 24,182.34, indicating cautious market sentiment, with a total after-hours trading volume of 217.79 million shares, reflecting investor concerns about market volatility.
- Active Stock Performance: Energy Transfer L.P. (ET) is up $0.0178 to $18.98 with 6,009,115 shares traded, indicating market recognition of its buy recommendation, which may drive short-term price increases.
- NVIDIA Earnings Outlook: NVIDIA Corporation (NVDA) is down $0.15 to $177.49, despite three upward revisions in earnings forecasts over the last four weeks, suggesting optimistic market sentiment for its fiscal Q1 2027 with a consensus EPS forecast of $2.22.
- Devon Energy Prospects: Devon Energy Corporation (DVN) is down $0.2271 to $49.42, yet it has seen four upward revisions in earnings forecasts in the past month, indicating continued market optimism for its fiscal Q1 2026 with a current EPS forecast of $1.02.
See More
Three Stocks Worth Pitching for Investment
- Energy Transition Potential: Energy Transfer (ET) operates one of the largest and most diversified midstream networks in the U.S., particularly its natural gas system in the Permian Basin, allowing it to capitalize on low natural gas prices, with a robust pipeline of high-return projects expected to benefit from soaring power demand driven by AI data centers.
- Deep Value Stock: JAKKS Pacific (JAKK) trades at a forward P/E ratio below 6.5, significantly lower than peers like Hasbro and Mattel, and despite facing declining sales and tariff pressures, it achieved its highest gross margin in 15 years under CFO John Kimble, indicating strong transformation potential.
- Catalyst from Children's Movies: JAKKS's sales are heavily tied to popular children's movies, and the promising 2026 movie slate could serve as a significant catalyst for stock price appreciation, enhancing market confidence in its future growth prospects.
- Software Development Leader: GitLab (GTLB) has a market cap of $3.7 billion and over $1.25 billion in net cash, with projected revenue growth in the mid to high teens, and its newly launched Duo Agent solution will aid its transition to a complete software development lifecycle platform, enhancing its competitive edge in the market.
See More
Energy Transfer's Attractiveness Grows Amid Market Dynamics
- Growth Potential of Energy Transfer: Energy Transfer (ET) operates one of the largest and most diversified midstream networks in the U.S., with its natural gas system in the prolific Permian Basin allowing access to some of the cheapest natural gas, which is expected to benefit from soaring power demand driven by AI data centers, thus creating a pipeline of high-return growth projects for the company.
- Attractive Valuation: ET trades at a forward enterprise value (EV)-to-EBITDA ratio of just 8.7, indicating its undervaluation compared to peers, while also offering a 7% dividend yield, making it appealing to investors seeking stable returns amidst market fluctuations.
- Transformation and Potential of JAKKS: Toymaker JAKKS Pacific (JAKK) has undergone a transformation under its new CFO, achieving its highest gross margin in 15 years despite declining sales, showcasing its potential for growth driven by popular children's movies, positioning it as a stock to watch this year.
- Market Opportunities for GitLab: GitLab (GTLB), with a market cap of $3.7 billion and over $1.25 billion in net cash, is projected to grow revenue despite a slowdown, with its newly launched Duo Agent solution and a shift to a hybrid pricing model expected to stimulate growth, solidifying its role in the software development sector.
See More
Investment Strategy and Passive Income Growth
- Cash Reserve Strategy: I plan to transfer over $1,000 in excess cash into my brokerage account to capitalize on future market downturns, aiming for 10% of my portfolio to be in cash, with half of that goal already achieved.
- Passive Income Objective: I intend to invest about $400 in high-yield dividend stocks this April, including Brookfield Renewable, Energy Transfer, and W.P. Carey, which will help accelerate my path to financial independence through their growing dividends.
- Brookfield Renewable Growth Potential: The company has increased its dividend by at least 5% annually since its formation in 2011 and expects cash flow per share to grow over 10% annually, supporting its dividend growth targets.
- AI Investment Opportunity: I plan to invest the remaining approximately $100 in Brookfield Corporation, which sees AI as a significant investment trend, projecting 25% annual earnings growth over the next five years from its AI infrastructure investments.
See More
Surging Oil Prices Boost Energy Companies
- Impact of Rising Oil Prices: The intensification of the Middle East conflict has led to a surge in oil prices over the past month, which, while increasing production and logistics costs, has created strong tailwinds for major oil and energy companies, enhancing their profitability.
- ExxonMobil's Growth Potential: ExxonMobil is expected to see its earnings per share (EPS) grow at a 14% CAGR from 2025 to 2028, primarily driven by expansions in the Permian Basin and Guyana, showcasing its robust growth potential in a high oil price environment.
- Energy Transfer as a Safe Investment: Energy Transfer, as a midstream pipeline company, offers an attractive 7% forward yield and has raised its distributions annually for the past five years, demonstrating stability and growth potential amid rising oil prices.
- Future Outlook: As oil prices rise, major oil companies like ExxonMobil and Chevron will ramp up production, which will drive growth in cash flow and earnings per unit (EPU) for midstream firms like Energy Transfer, with EPU expected to grow at a 12% CAGR from 2025 to 2028.
See More
Investment Opportunities in ExxonMobil and Energy Transfer
- Profit Boost from Rising Oil Prices: Oil prices have surged over the past month due to escalating Middle East conflicts, benefiting ExxonMobil's upstream profits, which are expected to enhance cash flow for dividends and buybacks, thereby solidifying its position in the energy market.
- Stable Dividend Growth: ExxonMobil has raised its dividend for 43 consecutive years, currently offering a forward yield of 2.6%, making it a safe choice for investors looking to increase exposure amid rising oil prices, appealing to those seeking stable returns.
- Growth Potential of Energy Transfer: Energy Transfer has rapidly expanded over the past few years, now operating over 140,000 miles of pipeline with a forward yield of 7%, and has increased distributions annually for five consecutive years, showcasing strong performance in the midstream market.
- Future Earnings Expectations: Analysts project ExxonMobil's earnings per share (EPS) to grow at a 14% CAGR from 2025 to 2028, primarily driven by expansions in the Permian Basin and Guyana, further enhancing its long-term investment appeal.
See More
NASDAQ 100 After Hours Update
- After Hours Overview: The NASDAQ 100 index is down 9.83 points to 24,182.34, indicating cautious market sentiment, with a total after-hours trading volume of 217.79 million shares, reflecting investor concerns about market volatility.
- Active Stock Performance: Energy Transfer L.P. (ET) is up $0.0178 to $18.98 with 6,009,115 shares traded, indicating market recognition of its buy recommendation, which may drive short-term price increases.
- NVIDIA Earnings Outlook: NVIDIA Corporation (NVDA) is down $0.15 to $177.49, despite three upward revisions in earnings forecasts over the last four weeks, suggesting optimistic market sentiment for its fiscal Q1 2027 with a consensus EPS forecast of $2.22.
- Devon Energy Prospects: Devon Energy Corporation (DVN) is down $0.2271 to $49.42, yet it has seen four upward revisions in earnings forecasts in the past month, indicating continued market optimism for its fiscal Q1 2026 with a current EPS forecast of $1.02.
See More
Three Stocks Worth Pitching for Investment
- Energy Transition Potential: Energy Transfer (ET) operates one of the largest and most diversified midstream networks in the U.S., particularly its natural gas system in the Permian Basin, allowing it to capitalize on low natural gas prices, with a robust pipeline of high-return projects expected to benefit from soaring power demand driven by AI data centers.
- Deep Value Stock: JAKKS Pacific (JAKK) trades at a forward P/E ratio below 6.5, significantly lower than peers like Hasbro and Mattel, and despite facing declining sales and tariff pressures, it achieved its highest gross margin in 15 years under CFO John Kimble, indicating strong transformation potential.
- Catalyst from Children's Movies: JAKKS's sales are heavily tied to popular children's movies, and the promising 2026 movie slate could serve as a significant catalyst for stock price appreciation, enhancing market confidence in its future growth prospects.
- Software Development Leader: GitLab (GTLB) has a market cap of $3.7 billion and over $1.25 billion in net cash, with projected revenue growth in the mid to high teens, and its newly launched Duo Agent solution will aid its transition to a complete software development lifecycle platform, enhancing its competitive edge in the market.
See More
Energy Transfer's Attractiveness Grows Amid Market Dynamics
- Growth Potential of Energy Transfer: Energy Transfer (ET) operates one of the largest and most diversified midstream networks in the U.S., with its natural gas system in the prolific Permian Basin allowing access to some of the cheapest natural gas, which is expected to benefit from soaring power demand driven by AI data centers, thus creating a pipeline of high-return growth projects for the company.
- Attractive Valuation: ET trades at a forward enterprise value (EV)-to-EBITDA ratio of just 8.7, indicating its undervaluation compared to peers, while also offering a 7% dividend yield, making it appealing to investors seeking stable returns amidst market fluctuations.
- Transformation and Potential of JAKKS: Toymaker JAKKS Pacific (JAKK) has undergone a transformation under its new CFO, achieving its highest gross margin in 15 years despite declining sales, showcasing its potential for growth driven by popular children's movies, positioning it as a stock to watch this year.
- Market Opportunities for GitLab: GitLab (GTLB), with a market cap of $3.7 billion and over $1.25 billion in net cash, is projected to grow revenue despite a slowdown, with its newly launched Duo Agent solution and a shift to a hybrid pricing model expected to stimulate growth, solidifying its role in the software development sector.
See More
Investment Strategy and Passive Income Growth
- Cash Reserve Strategy: I plan to transfer over $1,000 in excess cash into my brokerage account to capitalize on future market downturns, aiming for 10% of my portfolio to be in cash, with half of that goal already achieved.
- Passive Income Objective: I intend to invest about $400 in high-yield dividend stocks this April, including Brookfield Renewable, Energy Transfer, and W.P. Carey, which will help accelerate my path to financial independence through their growing dividends.
- Brookfield Renewable Growth Potential: The company has increased its dividend by at least 5% annually since its formation in 2011 and expects cash flow per share to grow over 10% annually, supporting its dividend growth targets.
- AI Investment Opportunity: I plan to invest the remaining approximately $100 in Brookfield Corporation, which sees AI as a significant investment trend, projecting 25% annual earnings growth over the next five years from its AI infrastructure investments.
See More
