A visual showing how AI investment is fueling growth in the energy sector and global financial markets.
Energy Companies Become the New Winners of the AI Boom
Large investors are changing how they invest in artificial intelligence. Instead of focusing only on big technology firms, many institutions are now placing more money into energy stocks that power the growing world of AI. Firms like BlackRock say energy companies may deliver stronger long term returns than traditional technology leaders in 2026.
As data centers expand and AI models require more computing power, electricity and infrastructure have become just as valuable as software and hardware. This shift is turning energy providers into some of the most important players in the global AI economy.
Why Investors Are Moving Away From Big Tech
In late 2025, technology companies such as Microsoft, Meta, and Alphabet produced more than 40 percent of the gains in the S and P 500. Much of this growth came from demand for AI driven cloud services and data center expansion.
But investor confidence in tech stocks is starting to cool. A recent BlackRock investment survey of more than 700 institutions across Europe, the Middle East, and Africa found that only about 20 percent still see large US tech companies as their top AI investment choice.
In contrast, 55 percent of respondents said energy suppliers were now the most important AI investment. Another 37 percent preferred companies that build and manage infrastructure for data centers and power grids.
AI Is Driving a Global Power Boom
The reason behind this shift is simple. AI needs massive amounts of electricity. According to the International Energy Agency, global data centers consumed about 460 terawatt hours of electricity in 2025, which was a 25 percent increase from the year before.
By 2030, that number is expected to reach around 1,000 terawatt hours, which is double what the world used in 2022. AI training, cloud computing, and digital services are pushing energy demand higher every year. This makes energy stocks and power infrastructure one of the most reliable ways to benefit from the AI boom.
BlackRock Says Energy Offers Better Balance
BlackRock’s head of US equity strategy, Ibrahim Kanan, said investors now need to balance their exposure to large technology companies while also capturing new opportunities in sectors that support AI growth.
Energy firms provide a way to gain from artificial intelligence without taking on the same risks that come with volatile tech stocks. Power providers, grid operators, and infrastructure builders earn steady income as long as AI keeps expanding.
Energy Stocks May Outperform Tech in 2026
BlackRock’s market models suggest that energy sector stocks could outperform the Nasdaq in 2026. As AI computing demand continues to rise, companies that generate and deliver electricity will gain more pricing power and stronger revenue streams.
Investors also benefit from lower volatility and inflation protection when holding energy assets. In a world where AI is reshaping every industry, power is becoming the foundation of digital growth. As one famous technology leader once said, electricity drives modern progress. In 2026, AI is proving that idea right by turning energy stocks into the new market leaders.
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