Utilities used to be the sector investors owned for stability, not growth, but AI driven electricity demand has scrambled that assumption. Expect a 100 gigawatts of new data center capacity will come online over the next four years, growing at a 14% annual clip through 2030, and that surge is forcing investors to draw sharper distinctions within a sector many once treated as one trade. 

Money managers increasingly see the more interesting opportunity sitting outside the traditional utility names entirely.

One portfolio manager called that on site power and electrical infrastructure theme a safer bet on the growth story, since it wins regardless of which individual utility or power producer ultimately comes out ahead.

Finsum: As AI reshapes electricity demand, investors are increasingly looking past traditional utility stocks toward the infrastructure manufacturers.