The utilities sector used to be synonymous with boredom: regulated rates, reliable dividends, minimal growth, and a defensive role in a portfolio. It was where investors moved their capital when they feared a recession. This image has changed dramatically over the past two years. After U.S. electricity consumption began to grow again following nearly two decades of stagnation, energy providers have become at the center of a technological revolution. The main driver is data centers for artificial intelligence, which consume enormous amounts of energy. According to our analyses, AI accounts for roughly 43% of the expected growth in electricity demand in the United States through 2032. Added to this are the electrification of transportation, the return of industrial manufacturing to U.S. soil, and growing interest in nuclear energy as a stable, zero-emission source.

We’ll focus on the four most liquid U.S. utility funds that dominate this category. At first glance, they look almost…