Clean energy company NextEra Energy (NEE) is teaming up with Exxon Mobil (XOM), the largest oil company in the U.S., to build a massive data center site that will be powered by natural gas, according to CEO John Ketchum. In addition, the 1.2-gigawatt facility will use Exxon’s carbon capture technology in order to help lower emissions. And while there is no deal in place yet, the companies plan to market the site to a hyperscaler in early 2026.
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For reference, hyperscalers are large tech firms that run data centers used to train and operate artificial intelligence models. Although NextEra is best known as the country’s leading renewable energy developer, the company is increasingly turning to natural gas in order to meet the soaring energy needs of these AI-focused data centers. Therefore, NextEra expects to add up to eight gigawatts of gas-powered infrastructure by 2032.
The company is also working to provide 15 gigawatts of power for data center hubs by 2035, which includes at least three campuses that are being built with Google (GOOGL). Ketchum noted that many of these projects will initially run on “bridge power” like renewables and battery storage, with natural gas ramping up later to handle longer-term energy needs. Interestingly, the project has already secured 2,500 acres of land in the Southeast, near Exxon’s carbon dioxide pipeline infrastructure. Nevertheless, shares are down at the time of writing.
Is NEE Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NEE stock based on 12 Buys, four Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average NEE price target of $92.69 per share implies 14% upside potential.
