Two Utility Stocks to Buy Amid the AI Energy Boom

The electricity sector is undergoing a fundamental transformation. As artificial intelligence infrastructure continues to expand, power consumption patterns are shifting dramatically—and utility companies are uniquely positioned to benefit from this long-term shift. Two utility stocks to buy that stand out in this evolving landscape are NextEra Energy (NYSE: NEE) and The Southern Company (NYSE: SO).

Both companies offer distinct investment propositions, whether you’re seeking growth, income, or a balanced approach to utility sector exposure. Understanding their individual strengths will help you determine which utility stocks to buy aligns best with your portfolio goals.

NextEra Energy: A Growth Story Disguised as a Utility

NextEra Energy operates the nation’s largest electric utility through its subsidiary Florida Power & Light (FPL), while simultaneously leading the renewable energy sector—a rare combination that positions it for exceptional growth.

Traditionally, electric utilities have been viewed as stable, income-producing investments with minimal growth potential. NextEra is rewriting that playbook. Florida’s booming population and the explosive rise of data center facilities are transforming what was once a staid business into a growth powerhouse. FPL’s revenues made up approximately 66% of NextEra’s total $27 billion in revenue for 2025, while the company’s renewable energy division generated an impressive $8.7 billion in revenue—a remarkable $1.2 billion increase year-over-year from 2024.

This dual-engine approach creates a powerful synergy. As traditional electricity demand rises, NextEra’s renewable capacity scales to meet that demand, creating multiple profit centers. The company projects earnings growth of at least 8% annually through 2032, with dividend increases planned at 10% in 2026 and 6% annually through 2028. For buy-and-hold investors seeking capital appreciation alongside income growth, these projections are compelling.

Southern Company: Steady Income With a Long Dividend Track Record

While Southern Company may lack some of NextEra’s growth catalysts, it brings different strengths to a utility stocks portfolio. The Atlanta-based company has raised its dividend for 24 consecutive years—a testament to consistent financial management and stability. Its current dividend yield comfortably exceeds 3%, making it attractive for income-focused investors.

Southern Company is also benefiting from data center expansion, particularly in the Southeast where Georgia and Alabama are emerging as technology hubs. In its most recent quarter, the company reported revenue growth of 7.5% year-over-year, suggesting momentum will likely continue as these regions attract more computational infrastructure.

While Southern Company’s stock gained 10% over the past 12 months compared to NextEra’s 38% appreciation, it compensates with lower volatility and higher current income. For investors seeking a stable, income-producing holding, Southern Company serves as an excellent portfolio foundation.

Which Utility Stocks to Buy: A Matter of Investor Profile

The investment case for both companies rests on a shared fundamental: electricity demand is projected to surge by as much as 25% through 2030, driven primarily by AI infrastructure needs. This growth rate far exceeds historical utility sector norms, signaling a genuine structural shift rather than a temporary trend.

For growth-oriented investors, NextEra Energy offers exposure to both traditional utility cash flows and renewable energy expansion, with aggressive earnings growth projections. For income investors prioritizing stability and current yield, Southern Company’s dividend history and lower volatility make it an attractive choice.

Both utility stocks to buy represent a compelling way to participate in the AI infrastructure boom while capturing the defensive characteristics that have always made utilities valuable portfolio holdings. In February and beyond, these two stocks merit serious consideration from investors seeking exposure to this transforming sector.