3 AI-Power Stocks Riding the Same Data Center Boom, Ranked By Risk
Key Points
Bloom Energy makes hydrogen fuel cells and has a shockingly high 300x P/E ratio.
Brookfield Renewable Partners operates a clean-energy-focused business and offers a 5.6% yield.
NextEra Energy is a mix of a regulated utility and a clean energy giant, and it's leaning into AI electricity demand growth.
- 10 stocks we like better than Bloom Energy ›
Between 2005 and 2025, electricity demand increased 10%. Between 2025 and 2045, electricity demand is projected to grow by 60%. Artificial intelligence (AI) is expected to be an important part of the massive step change in demand, alongside other new technologies like electric cars.
Long-term investors can get in on this growth in many ways, but there are three you should definitely know about: Bloom Energy (NYSE: BE), Brookfield Renewable (NYSE: BEP)(NYSE: BEPC), and NextEra Energy (NYSE: NEE). The big story here, however, is that each one has a very different risk profile.
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Bloom Energy: High risk
Bloom Energy makes hydrogen fuel cells. It has yet to turn a full-year profit as a company, though that is highly likely to change in 2026. The big story here is that the electric grid is struggling to keep up with demand from artificial intelligence, and Bloom Energy's fuel cells are helping to bridge the gap. The company reports its backlog only once a year, but it entered 2026 with a product backlog of $6 billion, up 140% from a year earlier. The backlog has likely grown in 2026.
The big problem with Bloom Energy is that investors are well aware of the AI connection. The stock has risen more than 200% over the past 12 months, pushing the price-to-earnings ratio to a shockingly high 360x, as of this writing. It is entirely possible that this hydrogen energy company grows into its valuation, but it is still only appropriate for the most aggressive growth investors.
Brookfield Renewable: Medium risk
Brookfield Renewable owns a diversified portfolio of clean energy assets. The list includes hydroelectric, solar, and wind power, as well as storage and a stake in Westinghouse, one of the world's largest service providers to the nuclear power industry. It is also geographically diverse, with operations in North America, South America, Europe, and Asia. It is a one-stop shop for investors seeking clean energy exposure. And it is a reliable dividend payer, with a lofty 5.6% yield.
It falls into the medium risk category because it is entirely focused on providing clean energy on a contract basis, which means it charges market rates. It is already working with AI giants like Google and Microsoft (NASDAQ: MSFT), which is good, but without the monopoly that a regulated utility is built on, the attractive yield here comes with additional risk.
NextEra Energy: Low risk
NextEra Energy is one of the world's largest utilities. It operates one of the largest regulated utilities in the United States and one of the world's largest contract solar and wind power businesses. Its regulated operations, largely composed of Florida Power & Light, are a solid foundation. Its clean energy operations are the growth platform. NextEra has increased its dividend annually for three decades and offers an attractive 3.2% yield.
The big AI story with NextEra is its proposed acquisition of utility peer Dominion Energy (NYSE: D). Dominion operates in one of the world's most important data center markets, so this acquisition is basically NextEra leaning into demand growth. There's some risk in the story, given the company's unregulated operations and the yet-to-be-completed acquisition, but compared to Bloom Energy and Brookfield Renewable, NextEra should be much easier for a conservative investor to own.
Take risk very seriously when it comes to AI
The excitement around AI has pushed the market's valuation to levels last seen before the dot-com bubble. When that bubble burst, the fallout was very painful. So risk needs to be carefully considered before you buy any AI-related stock. Bloom Energy is highly tied to AI. Brookfield Renewable is less so, but it is highly focused on just clean energy. And NextEra Energy is diversified and building on highly reliable regulated assets.
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Reuben Gregg Brewer has positions in Brookfield Renewable Partners. The Motley Fool has positions in and recommends Bloom Energy, Microsoft, and NextEra Energy. The Motley Fool recommends Brookfield Renewable, Brookfield Renewable Partners, and Dominion Energy. The Motley Fool has a disclosure policy.
