NextEra Energy stock (NYSE: NEE) soared nearly 2% on Monday as it plans to reopen the nuclear power plant in Iowa to supply Google data centers. The AI boom has stoked renewed interest in power sources that are bringing multinational corporations to its doorstep.

Google’s Alphabet signed an agreement with NextEra Energy to provide power sources to its data centers. The power plant in Iowa shut down in 2020 due to less demand and high maintenance costs. However, the robust demand for electricity to run AI data centres will bring the power plant back to life and resume business. The NEE stock is now in the spotlight after the agreement with the tech titan.

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NextEra Energy Stock in the Focus As It Will Supply Power to Google

Companies that are in the power grid sector and can provide round-the-clock energy will be the most sought-after. NextEra Energy stock could change its fortunes and reward investors in the coming years.

According to the agreement, NextEra Energy will restart the 615-megawatt plant and start delivering power to Google by 2029. This puts NextEra Energy stock in the ‘watch out’ category as an investment now could bear fruit by 2029.

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Google chose NextEra Energy because building a new power plant takes years, with several layers of red tape getting involved. Opening up new power plant facilities also comes with protests from environmental activists. In this case, the firm has to revive a shut-down plant, which is faster, and the tech giant chose the former.

AI data centers are now operating at peak capacity due to mounting competition. If NextEra Energy delivers to Google, many other tech giants could consider approaching the firm for power, which would eventually push its stock price higher. Investing in AI-related firms now could prove beneficial in the next decade.