Utilities Recast: From Dividend Proxy to AI Infrastructure Engine

A new Morningstar study argues that electricity demand from data centres is rewriting the economics of U.S. utilities; rewarding regions with pragmatic regulation and exposing those with political and

The transformation of the American utility sector has been so abrupt that even veteran investors are reassessing old assumptions. Morningstar’s US Utilities: 2025 Q4 Industry Pulse describes how an industry once valued for predictable dividends has become a growth vehicle tied to artificial-intelligence infrastructure. The report notes that “Utilities close 2025 with another market-beating performance and tailwinds for 2026,” marking a decisive break from the decade of stagnation that followed the financial crisis.