Power demand is growing at its fastest pace since the 1960s and 1970s, with all demand forecasts trending upward. The massive construction of artificial intelligence infrastructure is expected to require unprecedented additional power generation, with data center capacity projected to triple from 45 gigawatts (GW) to over 130 GW by 2030. Gabelli Funds has identified four stocks poised to benefit: WEC Energy (WEC.US), American Electric Power (AEP.US), Evergy (EVRG.US), and Pinnacle West Capital (PNW.US).

The primary demand drivers are hyperscale tech companies, including Amazon (AMZN.US), Microsoft (MSFT.US), Meta (META.US), and Alphabet (GOOGL.US). These firms require vast amounts of electricity, with an estimated $350 billion in AI infrastructure spending in 2025 alone—excluding similar investments by OpenAI, Oracle (ORCL.US), and others.

Gabelli Funds portfolio manager Tim Winter noted in a recent report that at least four stocks stand to gain. In Wisconsin, WEC Energy is supporting Microsoft’s construction of a 1.8 GW data center, one of the first hyperscale facilities currently under development, set to begin phased operations in 2026. Winter estimates this single facility will increase Wisconsin Electric’s peak load by 20%.

American Electric Power (AEP) raised its EPS growth guidance from 6%-8% to 7%-9%, citing an expected 28 GW in new peak demand by 2030 (22 GW from data centers). The company also increased its five-year capital investment plan to $72 billion, with 190 GW of customer projects awaiting grid connection.

Evergy (EVRG), a stable utility serving Missouri and Kansas, currently targets 4%-6% EPS growth based on 500 MW of contracted load. With a 15 GW project backlog pending budget approval, Winter expects some approvals by year-end, potentially boosting EPS growth.

Pinnacle West Capital (PNW) aims for 5%-7% EPS growth, supported by Arizona’s population expansion and 5 GW of new large-scale load additions—partly driven by TSMC’s $165 billion investment in six major chip fabrication plants within its service area.