BTIG's latest sector note identifies a quartet of companies the firm views as well positioned to benefit from a sustained increase in electricity demand associated with data center growth and AI-driven compute requirements. The report focuses on a mix of large-cap and smaller- and mid-cap utilities as well as specialized digital infrastructure operators, citing regulatory developments, project pipelines and valuation differentials as the primary rationales.
PPL Corporation
BTIG retains PPL as its Large-Cap Top Pick, pointing to robust load growth in Pennsylvania and Kentucky and the resolution of most regulatory uncertainty. In Pennsylvania, BTIG highlights a marked increase in data center connection activity: requests reached 28.3 GW in the first quarter of 2026, up from 25.2 GW in the fourth quarter of 2025. Roughly 10 GW of that request volume are under energy supply agreements, and about 5 GW are currently under construction.
The note underscores a joint venture between PPL and Blackstone to develop new generation assets in Pennsylvania as a potential source of earnings growth before 2030, and BTIG indicates management could announce progress on those efforts by year-end. In Kentucky, which BTIG identifies as PPL’s largest earnings segment, the company is tracking 12.9 GW of new load potential through 2032, an increase from 9.3 GW in Q4 2025, with approximately 11.9 GW of that new load tied to data centers. Given this backdrop, BTIG suggests PPL may need to roughly double the 1.8 GW of baseload generation currently approved.
BTIG lists several near-term catalysts for PPL: a certificate filing for additional Kentucky generation expected this fall, potential announcements regarding the Blackstone joint venture, scheduled rate case hearings in Rhode Island in July and the company’s Q2 2026 earnings report. The report also notes that a rate case settlement was approved by the Pennsylvania Public Utility Commission, a development that prompted some analysts to adjust price targets. Separately, PPL added former Ontario Power Generation CEO Kenneth M. Hartwick to its board of directors.
Portland General Electric
For its SMID-Cap Top Pick, BTIG moved to Portland General Electric, citing an improving Oregon regulatory environment and a valuation that appears discounted relative to peers. BTIG states that POR trades at roughly a 20% discount to other electric utilities despite operating in a jurisdiction where regulatory outcomes have improved more than the market recognizes.
The firm points to constructive regulatory outcomes already achieved, including the Seaside Battery Alternative Recovery Mechanism in November 2025 and a Distribution System Plan ARM in April 2026. A central catalyst identified by BTIG is POR’s holding company filing, with the Oregon Public Utility Commission expected to issue a final decision by August 25, 2026. BTIG notes that a holding company structure could create value through greater financing flexibility.
BTIG also highlights the upcoming finalization of the first phase of Oregon’s multi-year rate plan rulemaking, expected on July 7, 2026, which the firm views as favorable for providing earnings visibility and reducing regulatory lag. The report flags that Portland General Electric’s reported first-quarter 2026 results missed analyst forecasts for both revenue and earnings.
Riot Platforms
BTIG keeps Riot Platforms on its Top Pick list for the second half of 2026, driven in part by the company’s progress on high-performance computing (HPC) colocation. BTIG notes that Riot’s colocation agreement with Advanced Micro Devices expanded to 50 MW in April and that Riot retains approximately 1.9 GW of uncontracted, approved power capacity that could support further HPC growth.
The firm singles out Riot’s Corsicana site, about 55 miles from Dallas, as a premier data center location with roughly 1 GW of approved capacity. On a valuation metric tied to approved power, BTIG states Riot trades at about $5 million per megawatt of total approved power capacity, below the peer average of $7 million per megawatt. BTIG expects further power contracting, particularly in larger blocks, to offer upside to Riot’s valuation.
The report also references Riot’s collaboration with Terrestrial Energy to explore nuclear-powered data centers. In terms of coverage and investor interest, BTIG notes that Jefferies initiated coverage of Riot with a buy rating and that Keefe, Bruyette & Woods raised its price target.
CleanSpark
CleanSpark remains a Top Pick for BTIG, which highlights the company’s sizable marketed power portfolio intended for HPC colocation contracts. BTIG outlines CleanSpark’s footprint: a 250 MW site in Sandersville, Georgia, roughly 130 miles from Atlanta, and about 585 MW of approved power across two Texas sites near Houston and Austin.
During the first half of 2026, CleanSpark purchased about 122 acres adjacent to its Sandersville site to strengthen its competitive position for HPC contracts, according to BTIG. On an approved-power valuation basis, the firm states CleanSpark trades at approximately $3 million per megawatt, compared with a group average near $7 million per megawatt. BTIG argues that securing an initial HPC colocation lease could prompt a valuation re-rating similar to peers that already have contracted capacity.
The report notes CleanSpark missed analyst expectations for both earnings and revenue in its second fiscal quarter of 2026. The company also appointed Ruben Sahakyan as Senior Vice President of Finance and received an initiation of coverage with an Outperform rating from Citizens.
What BTIG is watching
- Data center connection requests and contracted energy volumes, particularly in Pennsylvania and Kentucky for PPL.
- Regulatory decisions and rate-making outcomes in Oregon for Portland General Electric, including the holding company filing decision and rulemaking finalization dates.
- Power contracting activity and the pace at which Riot and CleanSpark convert approved capacity into signed colocation agreements.
- Near-term project announcements and filings such as PPL’s potential certificate for additional generation and possible joint-venture updates tied to the Blackstone relationship.
BTIG’s selections underscore the intersection of traditional utility investment with the rising power demands of digital infrastructure. The firm highlights both operational developments - such as site acquisitions and contract expansions - and regulatory milestones that could influence earnings visibility and financing flexibility in the months ahead.