U.S. Utility ETFs Surge 8% Year-to-Date as AI Data Centers Drive 25% Annual Power Demand Growth

U.S. utilities-focused ETFs have gained an average of 8% year-to-date in 2026, driven by surging electricity demand from artificial intelligence data centers. Research indicates that data center equipment is projected to grow at roughly 25% annually over the next 4-5 years, with power infrastructure bottlenecks emerging as a key growth catalyst for utilities. Constellation Energy and Vistra, which operate nuclear and natural gas generation facilities and hold power supply contracts with tech giants, have seen their price-to-earnings ratios rise to 23 times, compared to their historical average of 17 times.
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