Utility stocks an AI play? (NYSEARCA:XLU)

The Utilities sector has experienced significant gains this year, advancing 13.6% and surpassing its losses from earlier in 2023. This growth is largely driven by increased demand for electricity from data centers, which are essential for powering AI technologies. Goldman Sachs predicts a 160% rise in data center power demand by 2030, necessitating a $50 billion investment in new power generation capacity in the U.S. This surge in demand is linked to the energy-intensive nature of AI processes, marking a potential long-term shift in power consumption trends.