January 7, 2025 - Utilities, the lowest-performing S&P 500 sector in 2023, rebounded strongly in 2024, reflecting a major shift in electricity consumption as AI, electrification and decarbonization drive demand. The Energy Information Agency predicts that global electricity use could rise as much as 75% by 2050.

This is good news for providers like Vistra and GE Vernova, the number two and number four best performing S&P 500 stocks of 2024.

Vistra, which joined the S&P 500 in May of last year, saw its stock price skyrocket by 261% in 2024. The company’s natural gas and nuclear power plants are well-suited to meet the reliability and scalability needs of data centers. Strategic agreements with cloud computing giants like Amazon and Microsoft to supply power at premium prices further bolstered its financial performance.

GE Vernova, General Electric’s energy spinoff, also saw remarkable growth in 2024, with its stock rising 150% after going public in April. The company’s gas turbines have seen strong demand as providers seek to address the growing energy needs of data centers. The company’s involvement in renewable energy projects—such as the $2.75 billion wind energy agreement in Australia, signed a year ago—further cements its position as a leader in the sector. GE Vernova has projected sales of $45 billion in 2028, up from previous estimates of $43 billion.