George Soros Is Betting Big on Utility Stocks as AI Power Demand Surges

Billionaire investor George Soros is placing significant bets on utility companies as the demand for power from data centers and electric vehicles surges. Soros Fund Management opened a stake in American Electric Power (AEP) in Q2, purchasing 768,000 shares for $105.1 million. The fund also grew its investment in Entergy (ETR), a utility company serving Arkansas, Louisiana, Mississippi, and Texas, from 77,000 shares to 914,000 shares.

Additionally, Soros Fund Management entered a new position in Nebius Group (NBIS), a company building data centers worldwide, with 310,000 shares valued at $85.6 million. The International Energy Agency (IEA) reported that global electricity demand is accelerating, driven by data centers and electric vehicles. American Electric Power is a major U.S. utility company serving 5.6 million customers across 11 states, with shares up almost 9% over the past year.

The company offers a dividend yielding 3.1% and has been expanding its capacity to meet growing electricity demand. However, data-center grid connections in Texas are being halted while regulators audit pending projects, potentially impacting hyperscalers and data-center builders like Nebius.