The 1 Thing That Can Slow AI’s Growth — And 3 Stocks That Will Profit From It

Because artificial intelligence (AI) demand is growing so rapidly, and data centers are such power-hungry operations, the one thing that will slow AI’s rapid ascent is energy supply. The surge in AI applications requires vast computational power, with data centers consuming electricity equivalent to small cities and projected to increase demand tenfold by 2030. This strains power grids that are already facing reliability issues due to intermittent renewables.

Nuclear power is the long-term solution because it is less expensive than other sources, offering baseload, carbon-free energy at a lower levelized cost. While nuclear power has some hurdles of its own to widespread adoption, like regulations and long build times, the three stocks that follow can begin solving the problem today. 

Unlike upstart small modular reactor (SMR) companies, these three stocks are already up and running and delivering.

Constellation Energy (CEG)

Constellation Energy (NASDAQ:CEG | CEG Price Prediction) stands out as the owner of America’s biggest nuclear portfolio, with nearly 90% of its generation coming from nuclear sources. This gives Constellation a direct edge in addressing AI’s energy crunch by supplying reliable, 24/7 power that data centers need to avoid downtime.

The company’s reactors produce over 23 gigawatts (GW) of capacity, enough to power millions of homes or equivalent AI operations. Recently, Constellation inked its largest-ever power purchase agreement with Microsoft (NASDAQ:MSFT) to restart Three Mile Island Unit 1 as the Crane Clean Energy Center, restoring 835 megawatts (MW) of carbon-free power to the grid by 2028. This move targets the AI boom, where data center electricity demand is expected to more than double by 2030, according to the International Energy Agency. 

Constellation is refocusing on grid-connected projects for hyperscalers, pivoting from behind-the-meter setups to ensure broader integration. By securing deals like these, the energy stock resolves the supply bottleneck with cost-effective nuclear output, enabling AI expansion without fossil fuel reliance or grid overloads. Its operational status means immediate scalability, outpacing slower alternatives and positioning investors for gains as AI demand escalates.

Talen Energy (TLN)

Talen Energy (NASDAQ:TLN) harnesses its Susquehanna nuclear plant in Pennsylvania to deliver carbon-free power tailored for AI workloads. With two reactors generating over 2.5 GW, Talen tackles the energy crunch through co-located data centers that draw directly from the source, minimizing transmission losses and enhancing reliability. 

A key example is its expanded partnership with Amazon (NASDAQ:AMZN), including a $650 million sale of a 960-megawatt data center campus and a power purchase agreement for up to 1,920 MW to support AI and cloud services. This setup allows Amazon to power operations sustainably, bypassing grid constraints that could hinder AI growth. 

Talen is also bolstering capacity by acquiring two natural gas-fired plants, adding nearly 3 GW in the PJM interconnection to meet eastern U.S. demand. As a pioneer in nuclear-data center integration, Talen provides an instant fix to AI’s power needs, with operational assets ensuring quick deployment. This not only stabilizes supply but cuts costs, as nuclear’s low operating expenses make it ideal for energy-intensive AI training. 

Investors benefit from Talen’s narrowed 2025 guidance, emphasizing data center-focused growth amid the AI surge.

Vistra (VST)

Vistra (NYSE:VST) owns the Comanche Peak nuclear plant in Texas, producing about 2.4 GW and forming a core part of its strategy to fuel AI data centers. This asset helps resolve the energy bottleneck by offering dispatchable, emission-free power that complements Vistra’s gas and solar holdings for hybrid reliability. 

Recently, Vistra locked in a long-term deal to supply Comanche Peak’s output to an unnamed buyer, likely a tech firm eyeing AI expansion in energy-rich Texas. With acquisitions expanding its nuclear footprint, Vistra is leading the renaissance in clean energy amid data center booms, where AI could drive unprecedented load growth. The company’s diversified portfolio ensures resilience against variability, providing the stable baseload AI requires without the intermittency of renewables alone. 

Vistra’s focus on grid-optimized generation positions it to capitalize on policies like Texas SB6, a state bill overhauling regulations for large power users and grid reliability, which could impact hyperscalers and large data centers. As operational nuclear capacity comes online faster than new builds, Vistra delivers immediate solutions, powering the AI revolution with affordable, scalable energy and driving shareholder value through buybacks and demand-driven earnings.