Utility-sector exchange-traded funds have risen approximately 8 percent year-to-date in 2026, with analysts at 24/7 Wall St. attributing the outperformance directly to surging electricity demand from AI data centers. The piece compares specific utility ETFs by yield, expense ratio, and exposure to data center load growth markets. Rising utility valuations reflect market expectations that power demand from AI infrastructure will sustain elevated electricity consumption for years.
An 8 percent sector gain in under seven months shows that capital markets are pricing AI power demand as a durable growth driver for utilities, not a temporary spike. This dynamic affects how utilities raise capital for grid expansion and at what cost, which in turn shapes the pace of new transmission and generation buildout serving data centers.
The 8 percent year-to-date figure, direct link to AI power demand, and ETF investment framing triggered selection. The story provides a market-level signal about how investors are valuing the power-demand story, adding a distinct angle not covered by already-published items on ratepayer costs or PJM auctions.