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Can AES Capitalize on Surging Data Center Energy Demand?
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Key Takeaways
AES is leveraging surging data center demand, with 4.2 GW operational and 8.2 GW in signed PPAs.
AES signed long-term PPAs to power Google's new data center, including energy generation and management.
AES aligns renewable portfolio with AI-driven power needs, boosting growth and revenue visibility.
The AES Corporation (AES - Free Report) is increasingly capitalizing on the explosive growth of data centers, which are becoming one of the fastest-growing sources of electricity demand globally. This surge is largely driven by the rapid adoption of artificial intelligence (AI), high-performance computing and cloud-based services.
Data centers require vast amounts of reliable, round-the-clock power to support servers, cooling systems and networking infrastructure. Major technology companies are under growing pressure to meet ambitious sustainability targets, including transitioning to carbon-free or net-zero energy operations. Against this backdrop, AES is well positioned to play a critical role.
By supplying electricity through long-term contracts known as Power Purchase Agreements (PPAs), AES ensures a stable and predictable revenue stream.
The company has about 4.2 gigawatt (GW) of data center PPAs in operation and a total of 8.2 GW in signed agreements. In February 2026, AES signed agreements for energy generation projects. AES will benefit from long-term revenue generation, expanded infrastructure development and stronger positioning in the fast-growing data-center energy market. Under the deal, AES signed long-term PPAs to supply power to Google’s new Wilbarger County data center and will develop, own, and operate co-located energy assets while providing energy management services.
By aligning its renewable portfolio with the energy-intensive and sustainability-driven needs of the tech sector, AES is not only capturing a high-growth demand segment but also reinforcing its position as a key enabler of the digital economy.
Companies Gain From Expanding Data Center Market
Several other companies positioned to benefit from rising data center demand are discussed below.
Xcel Energy (XEL - Free Report) is advancing its data center pipeline with a newly signed energy service agreement with a large data center in the Upper Midwest, taking its contracted data center capacity to more than 2 GW. XEL remains on track to reach roughly 3 GW of data center capacity by 2026.
GE Vernova Inc.’s (GEV - Free Report) gas power equipment backlog has grown significantly, from 62 GW to 83 GW, indicating strong revenue visibility and a structural rise in power demand driven by AI infrastructure.
AES’ Earnings Estimates
The Zacks Consensus Estimate for 2026 and 2027 earnings per share indicates an increase of 2.56% and 1.98%, respectively, year over year.
Image Source: Zacks Investment Research
AES Stock Trading at a Discount
AES is trading at a discount relative to the industry, with a forward 12-month price-to-earnings of 5.84X compared with the industry average of 16.11X.
Image Source: Zacks Investment Research
AES Stock Price Performance
In the past six months, the company’s shares have risen 6.9% compared with the industry’s 9.2% growth.
View the Zacks #1 Rank List
Image: Bigstock
Can AES Capitalize on Surging Data Center Energy Demand?
Key Takeaways
The AES Corporation (AES - Free Report) is increasingly capitalizing on the explosive growth of data centers, which are becoming one of the fastest-growing sources of electricity demand globally. This surge is largely driven by the rapid adoption of artificial intelligence (AI), high-performance computing and cloud-based services.
Data centers require vast amounts of reliable, round-the-clock power to support servers, cooling systems and networking infrastructure. Major technology companies are under growing pressure to meet ambitious sustainability targets, including transitioning to carbon-free or net-zero energy operations. Against this backdrop, AES is well positioned to play a critical role.
By supplying electricity through long-term contracts known as Power Purchase Agreements (PPAs), AES ensures a stable and predictable revenue stream.
The company has about 4.2 gigawatt (GW) of data center PPAs in operation and a total of 8.2 GW in signed agreements. In February 2026, AES signed agreements for energy generation projects. AES will benefit from long-term revenue generation, expanded infrastructure development and stronger positioning in the fast-growing data-center energy market. Under the deal, AES signed long-term PPAs to supply power to Google’s new Wilbarger County data center and will develop, own, and operate co-located energy assets while providing energy management services.
By aligning its renewable portfolio with the energy-intensive and sustainability-driven needs of the tech sector, AES is not only capturing a high-growth demand segment but also reinforcing its position as a key enabler of the digital economy.
Companies Gain From Expanding Data Center Market
Several other companies positioned to benefit from rising data center demand are discussed below.
Xcel Energy (XEL - Free Report) is advancing its data center pipeline with a newly signed energy service agreement with a large data center in the Upper Midwest, taking its contracted data center capacity to more than 2 GW. XEL remains on track to reach roughly 3 GW of data center capacity by 2026.
GE Vernova Inc.’s (GEV - Free Report) gas power equipment backlog has grown significantly, from 62 GW to 83 GW, indicating strong revenue visibility and a structural rise in power demand driven by AI infrastructure.
AES’ Earnings Estimates
The Zacks Consensus Estimate for 2026 and 2027 earnings per share indicates an increase of 2.56% and 1.98%, respectively, year over year.
Image Source: Zacks Investment Research
AES Stock Trading at a Discount
AES is trading at a discount relative to the industry, with a forward 12-month price-to-earnings of 5.84X compared with the industry average of 16.11X.
Image Source: Zacks Investment Research
AES Stock Price Performance
In the past six months, the company’s shares have risen 6.9% compared with the industry’s 9.2% growth.
Image Source: Zacks Investment Research
AES’ Zacks Rank
The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.