Recently, I’ve been paying attention to topics about recommended energy stocks in Taiwan and have found that the market narrative has completely changed.

In the past few years, investing in renewable energy was all about government subsidies and capacity expansion to make money, but now it’s entirely different. The explosive growth of AI has created a real surge in electricity demand, which is the true game changer. The data I’ve seen is astonishing—global data center electricity consumption is projected to jump from 460 TWh in 2022 to 1,050 TWh in 2026, with over half of that contributed by AI-related activities. The power consumption of training a large AI model can be equivalent to the annual electricity use of tens of thousands of households.

This directly leads to several investment opportunities. First is nuclear energy. Major companies like Microsoft, Amazon, and Google are investing heavily in nuclear power in 2025-2026 for a reason, because AI data centers require 24/7 uninterrupted power, which solar and wind alone cannot meet. Small modular reactors have become a new focus—prefabricated in factories, quick to deploy, and highly safe—making them ideal for siting near data centers.

Second is grid upgrades. Many think power generation is the bottleneck, but the real issue now is “easy generation, difficult transmission.” The global power grid is severely aging, with delivery times for high-voltage transformers and switchgear still taking 2-3 years. The proportion of data centers’ electricity consumption in the U.S. is expected to rise from 4% in 2023 to over 8%, directly boosting utility companies’ revenue growth rates from 1% to 4-6%.

Regarding Taiwan energy stocks, I favor several. Delta Electronics (2308) is a leader in power electronics, with high-power-density AI servers driving a surge in orders, plus scale in automotive electronics—75% of the world’s top 20 automakers are their clients. Hua Cheng Electric (1519) is a long-term partner of Taipower, benefiting from Taipower’s NT$564.5 billion grid reinforcement plan, and is also a leader with nearly 20% market share in charging stations nationwide.

In the green energy sector, United Renewable Energy (3576) has improved gross margins after capacity optimization, with overseas module shipments expected to grow over 15%. Sunwoda (4733) leads in wind turbine blade materials, with Taiwan’s offshore wind power Phase 3 accelerating in 2026, and order backlog exceeding NT$10 billion. Yuanjing (6443) focuses on high-efficiency products, with good cost control and a stable dividend policy.

On the U.S. stock side, Constellation Energy is the largest nuclear operator in the U.S., holding about 20% of the country’s nuclear capacity, with a 20-year contract with Microsoft, and a major expansion of data center projects expected in 2026. Oklo is a pioneer in micro nuclear reactors, supported by OpenAI CEO, and is ahead in NRC approval progress for 2026. Eaton is a leader in grid smartification, with rising transformer demand and surging orders. GE Vernova, spun off from GE’s grid business, has a record-high order backlog. NextEra Energy is the largest renewable energy company in the U.S., with stable dividends and an expected EPS growth of 8-10% annually amid net-zero transition.

My investment strategy for renewable energy stocks is to allocate 50-60% to AI-related power stocks (high growth, high volatility), 30-40% to traditional energy stocks (stable, defensive), and the remaining 10% in cash or bonds as a buffer. Avoid chasing highs; view short-term pullbacks within the long-term upward trend as opportunities to add. Key factors to monitor include AI capital expenditure, grid investment scale, order backlog, and technological iteration—renewables are not just hype but about securing order certainty and rigid demand.

Honestly, the renewable energy cycle is long, and bear markets are often accompanied by policy variables, but every downturn is a starting point for a long-term bull. Against the backdrop of the AI era and the global net-zero transition, 2026 to 2030 will be the most valuable structural opportunity window for renewable stocks.