The U.S. is on the cusp of a significant power surge, driven by the rapid expansion of AI data centers, which are projected to increase electricity demand by 100 gigawatts (GW) by 2035. Clearway Energy (CWEN), a leading clean power producer, is well-positioned to benefit from this surge, operating 13.6 GW of diversified power generation capacity across 27 states. With long-term power purchase agreements (PPAs) in place, Clearway generates stable cash flow, offering a nearly 5% dividend yield while maintaining a solid balance sheet for future investments.
Clearway plans to deploy over $3 billion in capital from 2026 to 2029, focusing on wind repowering, battery storage, and acquisitions to meet the growing energy needs of data centers, including significant projects with Google. This strategic expansion is expected to drive cash flow per share growth of 7% to 8% annually through 2030, with additional upside potential.
Investors should keep an eye on Clearway Energy as its combination of income and growth prospects positions it for robust total returns, making it a noteworthy player in the evolving energy landscape.
Source: fool.com