Energy Shortages Caused by AI: Kinder Morgan, Standard Uranium and GE Vernova Could Benefit

Kinder Morgan: The Network Is the Money Maker

Kinder Morgan's stock has recently experienced a slight dip. This is likely due primarily to market conditions such as rising bond yields. Otherwise, the stock of this NYSE-listed company is among the winners of the AI expansion in the United States.

However, this is not immediately apparent at first glance, as Kinder Morgan is, first and foremost, the largest operator of natural gas pipelines. The company transports approximately 40% of all US natural gas via a pipeline network spanning roughly 58,600 miles. AI data centres, in turn, require a stable baseload for operation. Consequently, there is a massive push toward gas-fired power plants near the new AI hubs. Through its pipeline network, Kinder Morgan can serve its customers, mostly utility companies, accordingly. That is why management is also focusing on targeted network expansion. The focus is on the southeastern United States and the state of Arizona in the west, which have become, and continue to develop into, hotspots for new data centres.

The figures from the company, founded only in 1997, highlight the strength of its current growth trajectory. In the first half of the year, Kinder Morgan benefited from strong demand across its natural gas network and higher transportation volumes. Revenue increased 12.2% year over year to approximately USD 9.31 billion. Bottom line, earnings rose disproportionately, reaching USD 1.84 billion, an increase of 28.7%. Free cash flow came in at a solid USD 1.66 billion.

With a strong balance sheet, the dividend was raised again by 2% to USD 0.2975 per share. Projected over the full year, this amounts to USD 1.19, corresponding to a dividend yield of just under 4%. This was accompanied by share buybacks. Although management has established a USD 3 billion program for this purpose, it is being implemented in a highly opportunistic manner. For now, investments in grid expansion, acquisitions, and debt reduction matter more. The good news is that Kinder Morgan's project backlog stands at around USD 10 billion. This makes future cash flows relatively easy to forecast.

Standard Uranium: Time to Reap the Rewards

The expansion of nuclear power plants in the US began years ago and has taken on a new dimension due to demand from AI infrastructure. Most recently, in May 2025, an executive order was issued calling for massive expansion and deregulation of the nuclear energy market. The goal is to increase capacity to 400 GW by 2050. The first power plants, such as the Palisades Nuclear Power Plant in Michigan and Three Mile Island (renamed the Crane Clean Energy Centre), are already back online or are about to be.

This is also accompanied by rising demand for uranium. Nuclear power plants need predictable supply contracts to maintain safe, stable operations. However, the growing capacity is not coming solely from the United States. Many other countries are also building nuclear power plants again, led by China, as well as India and Turkey. Since it often takes many years from construction to commissioning, this is gradually becoming evident in the demand for uranium.

One beneficiary could be neighbouring Canada, which has large reserves. The company Standard Uranium benefits primarily from exploration activities. Large amounts of money are flowing into the sector, and that capital needs to be invested. CEO and founder Jon Bey has spent years securing promising projects in the Athabasca Basin in Saskatchewan, the centre of Canadian uranium exploration, and now intends to reap the rewards. As a project generator, Standard Uranium carries out the groundwork for uranium projects, such as mapping and sampling. These projects are then passed on to exploration companies. In return, Standard Uranium typically receives shares and cash. The company also benefits from successful exploration. If the exploration is unsuccessful, however, there is no risk.

The company uses the capital raised to carry out its own projects. The focus is on Davidson River, which is strategically located near established uranium operations such as NexGen's Arrow and Fission Uranium's Triple R. Standard Uranium is capitalizing on the current high level of interest to conduct another capital increase. This is intended to accelerate drilling operations at Davidson River.

Standard Uranium has a market capitalization equivalent to only about EUR 7 million. The stock should therefore be viewed as somewhat speculative. However, it could take off as soon as the current financing round is completed and positive operational news is reported from its own or partner projects.

GE Vernova: Full Order Book

GE Vernova is a true heavyweight in the US energy market. The company, which emerged in 2024 as a spin-off of the long-established General Electric Group, has a market capitalization of more than USD 260 billion. Like its German counterpart Siemens Energy, GE Vernova is primarily an equipment manufacturer. The group produces gas turbines, wind turbines, and key hardware for the power grid. Without this equipment, new data centres cannot be connected to the high-voltage grid.

In the first half of the year, the NYSE-listed company posted exceptionally strong results. It benefits directly from the demand for grid and gas turbine technology. As a result, revenue rose by 19% to USD 20.44 billion compared to the previous year. The order book is also noteworthy: Order intake in the first six months totaled an impressive USD 42.5 billion. In Q2 alone, orders increased by 88%. As a result, the group's total order backlog stands at a record USD 176 billion.

The Power segment, which includes gas turbines and nuclear power, was the key driver of revenue and profit. Management is therefore optimistic about the future and raised its forecast in July. GE Vernova's stock had increased more than tenfold from its mid-2024 peak. Recently, it has been consolidating. As long as AI expansion continues, the company is likely to benefit significantly.

With GE Vernova, investors are betting on a supplier for the construction of gas-fired power plants and the associated grid connection infrastructure. However, the stock is no longer cheap. Standard Uranium is benefiting from the boom in exploration for new properties while advancing its own projects in parallel. As the largest operator of the US natural gas network, Kinder Morgan indirectly benefits from the expansion of data centres.