The AES Corporation AES is increasingly capitalizing on the explosive growth of data centers, which are becoming one of the fastest-growing sources of electricity demand globally. This surge is largely driven by the rapid adoption of artificial intelligence (AI), high-performance computing and cloud-based services.
Data centers require vast amounts of reliable, round-the-clock power to support servers, cooling systems and networking infrastructure. Major technology companies are under growing pressure to meet ambitious sustainability targets, including transitioning to carbon-free or net-zero energy operations. Against this backdrop, AES is well positioned to play a critical role.
By supplying electricity through long-term contracts known as Power Purchase Agreements (PPAs), AES ensures a stable and predictable revenue stream.
The company has about 4.2 gigawatt (GW) of data center PPAs in operation and a total of 8.2 GW in signed agreements. In February 2026, AES signed agreements for energy generation projects. AES will benefit from long-term revenue generation, expanded infrastructure development and stronger positioning in the fast-growing data-center energy market. Under the deal, AES signed long-term PPAs to supply power to Google’s new Wilbarger County data center and will develop, own, and operate co-located energy assets while providing energy management services.
By aligning its renewable portfolio with the energy-intensive and sustainability-driven needs of the tech sector, AES is not only capturing a high-growth demand segment but also reinforcing its position as a key enabler of the digital economy.
Companies Gain From Expanding Data Center Market
Several other companies positioned to benefit from rising data center demand are discussed below.
Xcel Energy XEL is advancing its data center pipeline with a newly signed energy service agreement with a large data center in the Upper Midwest, taking its contracted data center capacity to more than 2 GW. XEL remains on track to reach roughly 3 GW of data center capacity by 2026.
GE Vernova Inc.’s GEV gas power equipment backlog has grown significantly, from 62 GW to 83 GW, indicating strong revenue visibility and a structural rise in power demand driven by AI infrastructure.
AES’ Earnings Estimates
The Zacks Consensus Estimate for 2026 and 2027 earnings per share indicates an increase of 2.56% and 1.98%, respectively, year over year.
Image Source: Zacks Investment Research
AES Stock Trading at a Discount
AES is trading at a discount relative to the industry, with a forward 12-month price-to-earnings of 5.84X compared with the industry average of 16.11X.
Image Source: Zacks Investment Research
AES Stock Price Performance
In the past six months, the company’s shares have risen 6.9% compared with the industry’s 9.2% growth.
Image Source: Zacks Investment Research
AES’ Zacks Rank
The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
See This Stock Now for Free >>Xcel Energy Inc. (XEL) : Free Stock Analysis Report
The AES Corporation (AES) : Free Stock Analysis Report
GE Vernova Inc. (GEV) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
