Rising electricity demand from AI data centers, electrification, and grid reliability concerns are changing how investors look at power companies. Instead of being viewed only as defensive utilities, some energy stocks are starting to look like long-term growth plays. In this context, Constellation Energy (CEG), Talen Energy (TLN), and Dominion Energy (D) each offer a different way to gain exposure to higher power demand heading into 2026.
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While all three operate in the energy sector, their business models, asset mixes, and risk profiles are very different, which makes comparing them especially useful.
Constellation Energy
To begin with, Constellation Energy stands out as the most direct clean-power play of the group. In fact, the company runs the largest nuclear fleet in the United States, which is an asset that has become increasingly valuable as large tech companies and industrial users look for reliable and carbon-free electricity.
In the second half of 2025, Constellation highlighted strong nuclear performance and growing interest in long-term power contracts tied to data center demand. Because of this positioning, investors have increasingly begun to treat the stock less like a traditional utility and more like a growth-oriented energy infrastructure company.
Talen Energy
Separately, Talen Energy offers a more focused and higher-risk way to play the same trend. The company operates a mix of nuclear and natural gas plants and has benefited from long-term power agreements with major technology customers.
In mid-2025, Talen expanded its nuclear power relationship with Amazon’s AWS (AMZN) to secure demand from data centers well into the early 2040s. That added visibility, combined with improving regional power prices, has supported the stock, though its heavier exposure to power market cycles means higher volatility than peers.
Dominion Energy
Dominion Energy, meanwhile, provides a more traditional utility approach. The company continues to invest heavily in regulated electric and gas infrastructure, renewable energy, and grid upgrades. However, it is also exploring advanced nuclear technologies such as small modular reactors.
During the second half of 2025, Dominion emphasized its focus on earnings stability and long-term capital investment backed by regulated returns. While it may not offer the same upside potential as Constellation or Talen, Dominion appeals to investors who are looking for steadier exposure to rising electricity demand alongside income and lower risk.
Which Nuclear Stock Is the Better Buy?
Turning to Wall Street, out of the three nuclear stocks mentioned above, analysts think that TLN stock has the most room to run. In fact, TLN’s average price target of $455 per share implies more than 18% upside potential.
