Why Big Tech’s Demand for Uninterrupted AI Power Is a Major Reality Check for NextEra Energy Investors

Alex SiroisMon, June 29, 2026 at 4:57 PM UTC

0

zhaojiankang / Getty ImagesQuick Read -

NEE reported $1.09 Q1 EPS and a 33 GW backlog, while ENB delivers a 6.8% yield backed by contracted pipeline cash flows.

AI training demands 100% stable baseline power that wind and solar cannot reliably deliver, exposing the core weakness in any pure-renewables investment thesis.

Enbridge's C$40 billion backlog supports a 31st consecutive dividend hike, offering lower execution risk than NextEra's demanding $24.6 billion capex pace.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and NextEra Energy didn't make the cut. Grab the names FREE today.

NextEra Energy (NYSE: NEE) and Enbridge (NYSE: ENB) both just reported, and the contrast matters. Big Tech wants uninterrupted power for AI training, and these two answer that demand from opposite ends of the energy system. NextEra builds the plants. Enbridge moves the fuel. The quarter shows why investors leaning on a pure renewables story may need to recalibrate.

Renewables Backlog Swells. Pipelines Stay Booked Solid.

NextEra posted Q1 adjusted EPS of $1.09, up 10% YoY, on revenue of $6.701 billion. Energy Resources added 4 gigawatts to backlog, lifting the total to roughly 33 gigawatts including 1.3 gigawatts of battery storage. CEO John Ketchum said FPL is fielding "about 21 gigawatts of large load interest", with around 12 gigawatts in advanced talks. The Department of Commerce tapped NextEra to build 9.5 gigawatts of new gas-fired generation in Texas and Pennsylvania.

Enbridge reported adjusted EPS of $0.98, down from $1.03, while distributable cash flow rose to $3.85 billion. Mainline volumes averaged 3.2 million barrels per day, with CEO Greg Ebel noting the system has been "apportioned all year." Enbridge sanctioned the 300 MW Cone onshore wind project in Texas, extending its Meta partnership past 1 gigawatt of combined power generation.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and NextEra Energy didn't make the cut. Grab the names FREE today.

Build the Power Plant vs. Move the Fuel

Advertisement

Lens

NextEra

Enbridge

Core bet

Renewables, nuclear restart, new gas

Gas pipelines, storage, select renewables

AI hook

Google nuclear PPA, 40 data center hubs

10 Bcf/d takeaway opportunity

Dividend yield

~2.7%

~6.8%

Forward P/E

22

27

The intermittency problem sits behind every NextEra bull case. AI training models and data center campuses require continuous, 100% stable, always-on baseline power, and wind and solar do not deliver that without cost-prohibitive utility-scale storage. Ketchum clearly knows it, which is why NextEra is restarting Duane Arnold's 615 MW reactor under a 25-year Google PPA and accepting a federal mandate to build gas. Enbridge sidesteps that debate, earning take-or-pay fees on fuel that fires plants other companies build.

The AI Baseload Test Comes Next

Watch whether NextEra converts that 21 GW of FPL large load interest into signed tariffs by year-end, and whether Duane Arnold stays on its Q4 2028 to Q1 2029 restart timeline. For Enbridge, the 50+ data center opportunities targeting new takeaway capacity are the swing factor. Ebel's C$40 billion sanctioned backlog already supports the 31st consecutive annual dividend increase, so execution risk feels lower.

Why I Lean Toward Enbridge for AI-Era Income

For a defensive way to play surging AI power demand, Enbridge looks more durable. The 6.8% yield is backed by contracted cash flows, leverage at 5.0x debt-to-EBITDA sits at the top of the target range but stays manageable, and the gas-as-baseload narrative strengthens as hyperscalers chase 24/7 reliability. NextEra remains the higher-growth story, with 8%+ EPS CAGR through 2032 and visible hyperscaler wins. Yet the premium valuation, the $24.6 billion 2025 capex pace, and the Q4 2025 EPS of $0.54 against a $0.92 consensus tell me the execution bar is high. For investors prioritizing capital preservation in an AI grid that punishes intermittency, ENB screens as the more defensive profile.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and NextEra Energy didn't make the cut. Grab the names FREE today.

Original Article on Source

Source: “AOL Money”