Constellation Energy, NU E Power, Siemens: These stocks are at the heart of the energy boom

Constellation Energy: AI Makes Nuclear Power Shine

AI's insatiable appetite for electricity is providing a tailwind for Constellation Energy. The largest US operator of nuclear power plants posted an adjusted operating profit of USD 2.55 per share in the second quarter and raised its full-year forecast to USD 11.50 to USD 12.50. At the same time, the restart of the former Three Mile Island reactor is moving forward. Key regulatory hurdles have been cleared for the future Crane Clean Energy Center.

This is precisely where the transformation of the electricity market is evident. Hyperscalers require enormous amounts of energy around the clock and are therefore increasingly securing long-term capacity. Constellation has already signed a 20-year power purchase agreement with Microsoft for Crane. Meta has also secured long-term nuclear power from the Clinton Clean Energy Center.

The business model is thus exceptionally well-positioned. Constellation operates one of the largest low-carbon power generation fleets in the US and has existing sites, grid connections, and permits—assets that can take years to build today. The planned acquisition of Calpine would further expand the portfolio to include gas and geothermal power plants.

AI could therefore become a structural growth driver. As software companies invest billions in data centers, reliable power generation is becoming a scarce commodity. Constellation already possesses this very commodity today and can monetize it through long-term contracts.

NU E Power: Revaluation Driven by the AI Boom

The AI boom is increasingly becoming an energy problem. According to the International Energy Agency, global electricity consumption by data centers is expected to more than double, rising from 415 TWh in 2024 to around 950 TWh by 2030. For NU E Power, this phenomenon opens up a massive market. The Canadian company does not build data centers; rather, it develops the energy infrastructure required for their operation.

Its business model resembles that of a real estate developer more than that of a traditional electricity producer. NU E Power secures suitable sites and develops projects by obtaining permits, grid connections, and power purchase agreements. Subsequently, the energy parks can then be sold, developed through joint ventures with partners, or retained as equity stakes. The latter, in particular, could prove especially valuable in the long term. In addition to one-time proceeds from project sales, equity stakes in electricity production could generate recurring revenue.

During the past trading week, NUE announced the strengthening of its financial base. With the completion of the second tranche of the oversubscribed private placement, an additional CAD 1.89 million flowed into the company's coffers. In total, the company raised approximately CAD 3.86 million, even exceeding the placement volume, which had previously been increased to CAD 3.8 million. The fresh capital is to be used, among other things, for the further development of the project portfolio and the evaluation of additional energy infrastructure opportunities. In the long term, the model could be scalable far beyond the domestic market. After all, the digital economy's appetite for energy is a global phenomenon. NUE can flexibly combine solar energy, hydropower, storage, natural gas, or other forms of generation depending on the specific location.

Lethbridge One is already generating revenue. The 2.19-MW solar plant has been in operation since December 2024. If NU E Power succeeds in monetizing additional, larger projects and expanding its recurring revenue, the company, valued at around CAD 9 million, could benefit disproportionately from the AI energy boom.

Siemens: Data Centers Drive a Flood of Orders

The latest figures from Siemens demonstrate just how massive investments in electricity infrastructure for AI already are. In the third fiscal quarter, order intake rose by 14% on a comparable basis to a record high of EUR 27.9 billion. Revenue increased by 8% to EUR 20.8 billion, while profit in the industrial business jumped by 25% to a record high of EUR 3.5 billion. Siemens subsequently raised its profit forecast.

The real highlight, however, lies in the Smart Infrastructure segment. In the first nine months of the fiscal year, Siemens recorded triple-digit order growth in its data center business, reaching approximately EUR 6 billion. In the third quarter alone, orders for Smart Infrastructure surged by 42% to EUR 8 billion. Major orders from data center customers in the US and Europe were a key driver.

Siemens supplies part of the electrical infrastructure required between the power grid and the servers. This includes, among other things, electrification, power distribution, automation, and building technology. These are precisely the systems needed for every new AI campus.

The company is thus benefiting twice over from the AI boom. In addition to its own digital business, demand for the physical infrastructure for data centers is growing. The order backlog has now reached a record high of EUR 132 billion. This makes it clear that the AI investment cycle has long since ceased to affect only Nvidia and other chip companies—an ever-larger share of the billions is now going to the companies that make the necessary power available in the first place.

The AI boom is increasingly shifting the bottleneck from chips to electricity. Constellation Energy is monetizing existing generation capacity through long-term contracts, while Siemens is already securing billion-euro contracts for the necessary electrical infrastructure. NU E Power is getting in on the action much earlier. If the company succeeds in developing and monetizing its energy parks, its currently low valuation could offer significant leverage.