Big tech companies are increasingly striking direct deals with utilities to secure reliable, long-term energy supplies as their power needs surge, driven mainly by data centers, cloud computing, and artificial intelligence. These agreements often include power purchase agreements for renewable energy, such as wind and solar, allowing tech firms to lock in stable prices while helping utilities finance new generation and grid upgrades. In some cases, companies are also partnering with utilities on energy storage, transmission expansion, and even next-generation sources like small modular nuclear reactors to ensure around-the-clock power. For utilities, these deals provide guaranteed demand and investment capital. At the same time, tech companies offer energy security, cost predictability, and progress toward sustainability goals—making the partnerships strategically crucial for both sides.
We decided to screen our 24/7 Wall St. utility stocks research database to identify the top companies in the sector that have already struck substantial deals with some of Silicon Valley’s most prominent players. Surging demand for electricity, which will only continue to grow, has made some of America’s oldest and best utility companies one of the best investments for growth and income investors who would like to participate in the AI/data center revolution but would rather play it from a safer angle. What could be a better avenue than utility stocks that pay dependable, and in some cases large, dividend payments every quarter? Five top companies that we have covered for years may be perfect stocks for Boomer and Gen X investors, and all are rated Buy at the top Wall Street firms we cover.
Brookfield Renewable
This off-the-radar utility stock is an ideal choice for growth and income investors, with its hefty 3.93% dividend yield. Brookfield Renewable Corp. (NYSE: BEPC | BEPC Price Prediction) operates renewable power platforms and sustainable solutions. The company has signed a framework with Microsoft to develop over 10.5 GW of new renewable energy capacity from 2026 to 2030, and also has a hydro framework agreement with Google.
The company’s portfolio comprises hydroelectric, wind, solar, and storage facilities across North America, South America, Europe, and Asia. It has approximately 33,000 megawatts of installed capacity and a development pipeline with approximately 155,400 megawatts.
Brookfield Renewables businesses include:
- Renewable Power & Transition, which operates across five continents and manages a diverse portfolio of hydro, wind, solar, distributed energy, and sustainable solutions.
- Infrastructure owns and operates assets across the transport, data, utilities, and midstream sectors.
- Private Equity includes business services, infrastructure services, and industrials.
- Real Estate includes housing, logistics, hospitality, science and innovation, office, and retail.
- Credit & Insurance Solutions provides capital and risk management for insurers and individuals.
Morgan Stanley has an Overweight rating with a $48 target price.
Constellation Energy
This is one of the top companies in the industry, and it has already completed some huge forward deals. With a small 0.45% dividend, Constellation Energy Inc. (NYSE: CEG) is a growth story for sure. It is a producer of emissions-free energy and an energy supplier to businesses, homes, and public sector customers nationwide. The company has secured 20-year power purchase agreements with both Microsoft and Meta Platforms, including the entire 1,121-megawatt output of its Clinton Clean Energy Center nuclear plant to power a Meta data center.
The company’s nuclear, hydro, wind, and solar generation facilities have a generating capacity equivalent to powering 16 million homes and provide about 10% of the nation’s clean energy. Its segments include:
- Mid-Atlantic
- Midwest
- New York
- ERCOT
- Other Power Regions
Through its integrated business operations, it sells electricity, natural gas, and other energy-related products and sustainable solutions to various types of customers, including distribution utilities, municipalities, cooperatives, and commercial, industrial, public-sector, and residential customers across multiple geographic regions.
The company’s nuclear fleet has a generating capacity of approximately 22 gigawatts (GWs). It operates approximately 10 GW of natural gas, oil, hydroelectric, wind, and solar generation assets.
TD Cowen has a Buy rating with a $440 target price.
Dominion Energy
Dominion Energy Inc. (NYSE: D) is an integrated energy utility that offers electricity, natural gas, and related services. Many of the Wall Street firms we cover are positive on utilities, and this company pays a strong 4.62% dividend. The company has received requests to supply 47.1 gigawatts of power to data centers in Virginia, a major data center market, as part of a $50 billion capital investment plan from 2025 to 2029.
Dominion Energy operates through four segments:
- Dominion Energy Virginia
- Gas Distribution
- Dominion Energy South Carolina
- Contracted Assets
The Dominion Energy Virginia segment generates, transmits, and distributes regulated electricity to residential, commercial, industrial, and governmental customers in Virginia and North Carolina. The company has received requests to supply 47.1 gigawatts of power to data centers in Virginia, a major data center market, as part of a $50 billion capital investment plan from 2025 to 2029.
The Gas Distribution segment engages in:
- Regulated natural gas gathering
- Transportation
- Distribution and sales activities
- Nonregulated renewable natural gas distribution
This segment serves residential, commercial, and industrial customers.
The Dominion Energy South Carolina segment generates, transmits, and distributes electricity and natural gas to residential, commercial, and industrial customers in South Carolina.
Dominion serves approximately 7 million customers, and the company’s portfolio of assets includes approximately:
- 30.2 gigawatts of electric generating capacity
- 10,500 miles of electric transmission lines
- 85,600 miles of electric distribution lines
- 94,200 miles of gas distribution lines
Barclays has an Overweight rating with a $64 target price.
Entergy
This energy company primarily engaged in electric power production and retail distribution in the Deep South of the United States. This top utility stock always makes sense for conservative investors, and Entergy Corp. (NYSE: ETR) pays a solid 2.64% dividend. The company produces and distributes electricity in the United States and is embarking on building two new 1.5 GW gas-fired power plants to supply Meta’s $10 billion AI data center in Northeast Louisiana, with $41 billion in planned investments.
It operates in two segments:
- Utility
- Entergy Wholesale Commodities
The Utility segment generates, transmits, distributes, and sells electric power in the City of New Orleans, as well as portions of:
- Arkansas
- Louisiana
- Mississippi
- Texas
The company also distributes natural gas.
The Entergy Wholesale Commodities segment is involved in:
- The ownership, operation, and decommissioning of nuclear power plants located in the northern United States
- Sale of electric power to wholesale customers
- Provision of services to other nuclear power plant owners
- Ownership of interests in non-nuclear power plants that sell electric power to wholesale customers
The company generates electricity through gas, nuclear, coal, hydro, and solar sources. It sells energy to retail power providers, utilities, electric power co-operatives, power trading organizations, and other power generation companies. Its power plants have approximately 24,000 megawatts (MW) of electric generating capacity, which includes 5,000 MW of nuclear power.
J.P. Morgan has a $108 target price for the stock.
NextEra Energy
This top company is among the highest-rated utility stocks on Wall Street, and it pays a dependable 2.79% dividend. NextEra Energy Inc. (NYSE: NEE) is an electric power and energy infrastructure company. It is working with Google on developing gigawatt-scale data center campuses and will generate 2.5 GW of solar projects for Meta. NextEra also agreed to a 25-year deal with Alphabet to acquire 3 GW of energy from a redeveloped nuclear facility.
NextEra operates through its wholly owned subsidiaries, NextEra Energy Resources and NextEra Energy Transmission (collectively, NEER), and Florida Power & Light Company (FPL).
The FPL segment is a rate-regulated electric utility that generates, transmits, distributes, and sells electric energy in Florida. FPL has approximately 35,052 megawatts of net generating capacity, over 91,000 circuit miles of transmission and distribution lines, and 921 substations.
The NEER segment owns, develops, constructs, manages, and operates electric generation facilities in wholesale energy markets in the United States and Canada and includes assets and investments in other businesses with a clean energy focus, such as battery storage, natural gas pipelines, and renewable fuels. It owns, develops, constructs, and operates rate-regulated transmission facilities in North America.
J.P. Morgan has an Overweight rating and a $97 price target.
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