Is NextEra Energy (NEE) Turning Its Grid Expertise Into a Scalable AI Software Platform?

• In early December 2025, Google Cloud and NextEra Energy expanded their long-running collaboration to jointly develop multiple gigawatt-scale US data center campuses, pair them with dedicated generation and capacity, and deploy Google’s AI tools across NextEra’s operations, with a first commercial AI-enhanced grid product targeted for the Google Cloud Marketplace by mid-2026.
• This deepened partnership positions NextEra at the center of powering AI-driven data center growth while potentially turning its internal grid-optimization know-how into a marketable software offering for other utilities.
• Next, we’ll examine how building gigawatt-scale, AI-powered data center campuses with Google could reshape NextEra Energy’s long-term investment narrative.

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NextEra Energy Investment Narrative Recap

To own NextEra Energy today, you have to believe that long term power demand from AI, data centers and electrification will keep growing and that NextEra’s scale and renewables franchise can convert that into steady earnings and dividends. The expanded Google Cloud partnership reinforces the near term AI and data center demand catalyst, but it does not remove the biggest current risk: high interest costs on large capital projects that still rely on policy support and timely permitting.

The Google Cloud deal lines up directly with management’s recent comments about building 15 GW to 30 GW of data center power hubs by 2035 and using digital tools to improve grid reliability. Together with new clean energy contracts for Meta and the planned Symmetry Energy Solutions acquisition, it underlines how much of the near term story now hinges on pairing capital intensive buildouts with software and gas capabilities that can support large, always on AI loads.

Yet in contrast, investors should be aware that higher rates and shifting policy could still challenge...

Read the full narrative on NextEra Energy (it's free!)

NextEra Energy's narrative projects $35.9 billion revenue and $9.4 billion earnings by 2028. This requires 11.5% yearly revenue growth and a $3.5 billion earnings increase from $5.9 billion today.

Uncover how NextEra Energy's forecasts yield a $91.00 fair value, a 14% upside to its current price.

Exploring Other Perspectives

Before this Google news, the most optimistic analysts were already assuming revenue could reach about US$40.1 billion and earnings US$10.7 billion by 2028, which is far above consensus and reflects a belief that grid digitalization and storage will permanently lift margins rather than just support incremental AI demand.

Explore 11 other fair value estimates on NextEra Energy - why the stock might be worth 13% less than the current price!

Build Your Own NextEra Energy Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your NextEra Energy research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.
• Our free NextEra Energy research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate NextEra Energy's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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