Technology stocks have been a hot trade over the past year. High-tech Nasdaq 100 Index Growth of more than 19% in the past 12 months and nearly 15% in the same period S&P 500 Index. This is largely due to the explosion of data centers supporting cloud computing and artificial intelligence.
Although technology stocks are main beneficiary data center Boom, they’re not the only ones taking advantage of this megatrend. energy giant next generation energy (NYSE: NEE) is quietly driving the explosive growth of data centers.
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Data centers house the chips and other hardware needed to support cloud computing applications. The device generates a huge amount of heat, requiring a cooling system to prevent the technology hardware from overheating. Therefore, data centers consume a lot of power.
The expected explosive growth in data center capacity over the next few years will drive a surge in power demand. In the next 20 years, U.S. electricity demand is expected to grow by 58%, six times faster than the growth rate in the previous 10 years.
NextEra Energy is the country’s largest electric power company. It is also a leading clean power infrastructure development company. Its scale and expertise put it in a leading position to capitalize on the U.S. data center boom.
Technology companies are lining up to partner with NextEra Energy to support their data center expansion plans. In December, for example, the company signed 11 new power purchase agreements (PPAs) and two energy storage agreements with China. meta platform A total of 2.5 gigawatts (GW) of electricity. Several models will be developed solar energy Projects to support Meta’s power needs. The agreement builds on the company’s existing operating portfolio of nearly 500 megawatts (MW) of projects supporting Meta’s operations.
NextEra Energy also has extensive strategic partnerships with: Google. Last October, the two companies signed a collaboration agreement to accelerate nuclear energy Deployment in the United States As part of the deal, NextEra will restart a dormant 615-megawatt nuclear power plant under the auspices of a 25-year power purchase agreement with Google. They will also explore deploying additional nuclear energy capabilities to fuel AI data centers. Subsequently, the two companies established a landmark strategic partnership in December. As part of this collaboration, they will jointly develop multiple gigawatt-scale data centers. Through these and other deals, NextEra agreed to provide Google with approximately 3.5 gigawatts of power to support its data center expansion plans.
