NextEra Energy, NU E Power, Primoris – Electricity in the Supercycle

NextEra Energy: USD 22.3 Billion for the AI Boom

In response to the changing landscape, NextEra Energy recently unveiled an updated corporate strategy. A fundamental component of this strategy is the implementation of government-subsidized energy projects. The company plans to build and operate facilities with a total capacity of over 20 GW, consisting largely of gas-fired power plants and, to a lesser extent, energy storage systems.

What sets this approach apart is its financing structure. Under this strategy, NextEra Energy assumes no financial risk of its own and does not burden its own balance sheet. Funding for construction comes from international partners such as Japan and South Korea, as well as from government agencies. In exchange for operational implementation, NextEra receives fixed fee revenues. In addition to these contracts, the company is seeing rising electricity demand driven by new data centres, particularly in Florida.

Furthermore, a potential merger with Dominion Energy is on the table, which would lead to the company's expansion. Investments in nuclear energy are also continuing, but only under the condition of strict financial risk-sharing.

A concrete example is the Star project in Texas. For this project, NextEra Energy is collaborating with the US Department of Commerce, the South Korean government, and other companies, including Related Companies and the Lewis Energy Group. The investment volume totals USD 22.3 billion.

At the heart of the project is the construction of a new gas-fired power plant in the town of Encinal with a capacity of just under 6.5 GW. The electricity generated there is primarily intended for a planned data centre located directly adjacent to the site. Any excess energy capacity will be fed into the public Texas power grid. This approach complies with local regulations, which require new data centres to secure their own energy supply to avoid burdening the public grid. Power generation is scheduled to begin in 2029. Several thousand jobs are expected to be created during construction, with just under 170 permanent positions planned for the power plant's regular operation.

NU E Power: Energy Infrastructure for Rising Electricity Demand

NU E Power has recently strengthened its executive team with two experienced industry figures. John Windsor has served as COO since late August. He brings more than 20 years of experience with energy companies including Algonquin Power, Northland Power, and Emera, and was responsible, among other things, for a 3,200 MW portfolio. Peter Espig was appointed to the Board of Directors in early September. As Nicola Mining's current CEO, Espig previously served, among other roles, as Vice President at Goldman Sachs Japan and Olympus Capital and, according to NUE, has structured transactions worth billions.

These additions align with the company's growing business model. NUE sees itself as an energy infrastructure developer and pursues a "develop-to-divest" approach. The company advances projects through site selection, grid connection, permitting, and contract structuring. Target markets include regions with high electricity demand driven by computationally intensive applications and large industrial consumers.

The company already has an operational asset in Alberta. NUE holds a 25% stake in Lethbridge One, equivalent to 2.19 MW. The project has been in commercial operation since December 2024. Most recently, the company reported a project portfolio totaling 1,112.25 MW gross and 613.94 MW net based on its ownership stakes.

Hays could add further scale to the portfolio. In August, NUE signed a non-binding LOI to acquire the 145 MWac Hays solar project in Alberta, along with its 61.5 MW or 123 MWh battery storage facility. If completed, the transaction would give the company its first wholly owned project and its first integrated solar and storage asset. Completion of the acquisition remains subject to seven conditions precedent. Hays currently has no executed interconnection agreement and no power purchase agreement or other offtake arrangement in place.

Financially, the company recently secured additional funding flexibility. An oversubscribed private placement completed in August raised approximately CAD 3.86 million in gross proceeds. This provides NU E Power with additional capital alongside its existing operational asset and development pipeline as it continues to advance its energy infrastructure projects.

Primoris: Solar Projects Entering the Final Stretch

While NextEra is developing new billion-dollar projects and NU E Power is building out its pipeline, Primoris Services operates at a different point in the value chain. The company plans, builds, and maintains critical infrastructure for energy utilities, power grids, and renewable energy in the US and Canada. Six major solar projects have weighed heavily on the company's financial results so far this year because of unexpectedly high costs.

Five of these projects have since reached mechanical completion, while the remaining project is scheduled for completion in the fourth quarter. The company appointed Matt Tetrault as the new head of its renewable energy division to strengthen operational execution going forward. In addition, the group fully completed its authorized share repurchase program totaling USD 150 million, of which USD 100 million was executed in the third quarter. Management expressed confidence that it had thereby overcome the operational challenges.

The research firm Cantor Fitzgerald reaffirmed its "Neutral" rating on the stock and maintained a price target of USD 105 after the stock had lost significant value over the previous six months. Progress on the troubled solar projects is highlighted here as an important sign of a return to operational control.

Although second-quarter financial results fell short of market expectations, with a loss of USD 0.27 per share and revenue down just under 11%, a gradual recovery in profit margins by 2027 is considered achievable. In addition to the solar segment adjustments, experts also point to the continued high order backlog and stable demand in the natural gas generation sector. Other research firms, such as Guggenheim, have also maintained their positive recommendations.

With Project Star, NextEra Energy demonstrates the billions now being mobilized to meet AI's rapidly growing demand for electricity. As an infrastructure specialist, Primoris is positioned to support the expansion of generation and grid capacity required to meet this trend. NU E Power is taking an earlier-stage approach. With a growing project pipeline, battery storage systems, and its focus on hybrid energy solutions for data centres, the company aims to develop power-generation capacity before actual construction begins. If the AI-driven energy buildout continues, it could create a substantial new market for smaller developers such as NU E Power.