Can AI Driven Data Center Growth Continue to Strengthen NEE's Backlog?

NextEra Energy’s NEE unit Energy Resources is positioned to benefit from accelerating electricity demand from AI-driven data centers. Hyperscalers require large, reliable and rapidly deployable power supplies, creating new opportunities for renewable, storage and firm-generation projects. In first-quarter 2026, hyperscalers accounted for roughly 30% of Energy Resources’ 4 gigawatts (“GW”) backlog additions, highlighting their growing contribution to project origination.

Momentum remained strong in the second quarter, when Energy Resources added 3.6 GW of renewables and storage projects, lifting its backlog to nearly 35.1 GW. The expanding backlog strengthens visibility into future contracted revenues and earnings while demonstrating the company’s ability to convert rising electricity needs into long-duration infrastructure opportunities across multiple technologies.

Data centers provide a particularly attractive long-term channel. Energy Resources is discussing with 30 potential data-center hubs and expects that figure to reach 40 by year-end 2026. Its base case targets 15 GW of new generation serving large loads by 2035, while the upside case exceeds 30 GW, supported by direct hyperscaler, utility, cooperative, municipal and federal partnerships.
 
Energy Resources aims to add clean generation in the range of 76.6 GW to 107.6 GW in 2026 to 2032 to meet rising demand. NextEra Energy’s scale, development expertise and diversified generation portfolio should support sustained long-term growth as AI infrastructure expands. Its ability to combine renewables and battery storage with gas generation and potentially nuclear power provides flexibility to meet around-the-clock demand. Continued backlog conversion should support investment growth and earnings visibility through the next decade across the United States.

Data Center Demand Expands Utility Growth Opportunities

Rising electricity demand from AI-driven data centers is strengthening utilities’ long-term growth prospects by accelerating investments in generation, transmission and grid infrastructure. Large-load additions support higher power sales, rate-base expansion and new long-term contracts, while creating opportunities for utilities to deploy renewable, storage, gas and nuclear capacity.

Utilities like FirstEnergy FE and PPL Corp. PPL are benefiting from rising AI-driven data-center demand, supporting higher electricity load and infrastructure investment. FirstEnergy’s $36-billion Energize365 program underpins long-term earnings growth, while PPL’s expanding Pennsylvania data-center pipeline could create $10-$12 billion of additional generation opportunities through 2032, strengthening growth prospects.

The Zacks Rundown on NEE

NEE’s Earnings Estimates

The Zacks Consensus Estimate for NEE’s 2026 and 2027 earnings per share indicates a year-over-year increase of 8.09% and 8.71%, respectively.

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NextEra Energy’s Shares Trading at a Premium

The company is currently valued at a premium compared with its industry on a forward 12-month P/E basis. NextEra Energy is currently trading at 19.4X compared with the industry average of 14.95X.

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NEE’s Price Performance

NextEra Energy’s shares have gained 14.2% in the past year compared with the Zacks Utility - Electric Power industry’s rally of 10.6%.

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NEE’s Zacks Rank

NEE currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

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