The Demand Paradox Deepens#

When Joe Dominguez, CEO of CEG (Constellation Energy), urged the utility sector to "pump the brakes" on artificial intelligence data centre power demand during the company's May earnings call, his caution stood in sharp contrast to the exuberance gripping financial markets. The utility sector had already rallied nearly 19 per cent in 2024 and continued its ascent through 2025, capturing almost USD 500 billion in market capitalisation gains over a two-year period—a valuation surge comparable to the sector's consecutive 40 per cent advances in 2003 and 2004. Yet five months later, the verification crisis Dominguez anticipated has arrived with unmistakable force. The CNBC investigation from mid-October crystallises an uncomfortable reality: electricity companies across the United States cannot determine whether the ambient enthusiasm for data centre buildouts translates into actionable projects or remains chimeric. Willie Phillips, former chairman of the Federal Energy Regulatory Commission, captured the dilemma: "There is a question about whether or not all of the projections, if they're real. There are some regions who have projected huge increases, and they have readjusted those back." For Constellation Energy investors, this backdrop positions the company as a disciplined alternative to peers who may have extrapolated demand with insufficient caution—a distinction increasingly material to risk-adjusted returns.