I have been observing the changes in energy concept stocks recently and found that the investment logic for 2026 has completely changed. In the past few years, new energy investments relied on policy subsidies and scale competition; now, it’s entirely the opposite—AI is the true driver.

Think about it, how terrifying is the electricity consumption for AI model training and data center operations? According to forecasts from IEA and Goldman Sachs, global data center electricity use will surge from 460 TWh in 2022 to around 1,050 TWh by 2026, with AI-related parts contributing over half. The power consumption of training a large AI model reaches thousands of MWh, equivalent to the annual electricity usage of tens of thousands of households. This is not an exaggeration; it’s a real, rigid demand.

That’s why tech giants like Microsoft, Amazon, and Google are making massive investments in nuclear power from 2025 to 2026. Traditional wind and solar energy have intermittency issues and cannot meet the 24/7 power supply needs of data centers. Therefore, power companies with nuclear and natural gas assets are gaining the highest premiums. Amazon plans to deploy 12 small modular nuclear reactors, Microsoft has signed agreements with fusion companies, and Google commits to tripling nuclear capacity by 2030. All these actions point in the same direction—upgrading nuclear power and the grid has become the new focus.

Another easily overlooked bottleneck: “Power generation is easy, but transmission is difficult.” The aging of global power grids is severe, with delivery times for high-voltage transformers and switchgear still long—2 to 3 years in 2026. Forecasts indicate that data centers will account for over 8% of total electricity consumption in the U.S., up from 4% in 2023, directly driving the revenue growth rate of power companies from 1% to 4-6%. Manufacturers of grid equipment and power companies with sufficient grid connection capacity are the real “shovel sellers” opportunity.

Regarding investment opportunities in energy concept stocks, there are several worth noting in Taiwan. Delta Electronics is a leader in power electronics, providing UPS uninterruptible power supplies and smart grid solutions. The high power density of AI servers has already boosted their orders to surge in 2025. Huasheng Electric is a long-term partner of Taipower, a leading domestic transformer manufacturer, benefiting from Taipower’s strengthening grid resilience plan, which involves an investment of up to NT$564.5 billion. Also, United Renewable Energy, Shing Yin, and Yuanjing lead in solar cells, wind turbine materials, and solar modules, respectively. Although traditional new energy sectors are less volatile, long-term demand remains stable.

On the US stock side, Constellation Energy is the largest nuclear power operator in the U.S., holding about 20% of the country’s nuclear capacity. In 2025, it signed a 20-year contract with Microsoft to restart nuclear plants, and in 2026, data center projects are expected to expand significantly. Oklo is a pioneer in micro nuclear reactors, supported by OpenAI CEO, focusing on deployment near data centers, with valuation expected to rapidly re-rate after revenue starts in 2026. Eaton is a leader in grid automation, covering transformers and switchgear; AI-driven data centers boost demand, and the grid business is projected to grow over 25% in 2026. GE Vernova, a spin-off of GE’s power and grid division, will benefit from global grid upgrade investments in 2026. NextEra Energy, the largest renewable energy company in the U.S., can balance the volatility of AI power stocks amid the long-term trend toward net-zero transformation.

Investing in energy concept stocks requires discipline. It is recommended that AI power stocks constitute 50-60% of the portfolio, as these are high-growth but volatile; traditional energy stocks should make up 30-40% for stability and defense; the remaining 10% in cash or bonds as a buffer. Since new energy stocks are volatile, avoid chasing highs; look for short-term pullbacks within the long-term upward trend as opportunities to add. Key indicators to monitor include AI capital expenditure, grid investment scale, and order backlog—leading indicators. New energy is not about hype but about order certainty and rigid demand.

In the context of the AI era and the global net-zero transition, 2026 to 2030 will be the most promising structural opportunity window for energy concept stocks. The new energy cycle is long, and bear markets are often accompanied by policy winters, but every downturn is a starting point for a long-term bull market.