AI TRENDS | Utilities Seen Benefiting From AI and Data Center Investment, Wells Fargo Advisors Says

Utilities could benefit from rising investment tied to AI and data centers, as several companies in the sector have lifted their long-term annual earnings growth outlooks to the high-single- to low-double-digit range. According to NS3.AI, Wells Fargo Advisors said electric utilities are likely to see the greatest benefit from data center demand. Wells Fargo Advisors also said dividend yields of 2% to 3% support what it described as attractive total return prospects.