Energy companies raise $12.6B in IPOs as AI power demand grows

In short: Energy companies are raising unusually large amounts of money by going public, as investors focus on the electricity needed to run AI data centers.

What's going on

Energy companies raised $12.6 billion through IPOs (initial public offerings, when a company first sells shares to the public) in the first half of 2026, according to Dealogic. That is the highest half-year total since 1999, and it is also higher than all of 2025, which totaled $4.3 billion.

The main reason is simple, AI data centers need a lot of electricity. A typical AI-focused data center can use about 876,000 megawatt hours per year, which the report compares to the household electricity use of a city like Glasgow or Salt Lake City. Consultancy ICF projects US electricity demand will rise 39 percent from 2026 to 2035, and data centers are a big part of that increase.

Investors who previously focused on AI chip companies are now looking at what some analysts call “picks and shovels” businesses, meaning the behind-the-scenes suppliers that make the boom possible (like selling tools during a gold rush). Examples mentioned include Forgent Power Solutions, which makes electrical distribution equipment used in data centers, and Innio, a gas engine maker. The story also points to newer and riskier areas, including nuclear startups and “next-generation” geothermal, like Fervo, which raised nearly $2.2 billion.

What to watch

Not all of these newly public stocks are holding up. Dealogic says nearly two-thirds of energy companies that floated this year and last are now trading below their IPO price, suggesting some buyers are jumping in early and selling quickly. Watch whether future IPOs are priced more cautiously, and whether companies with proven products perform better than those still testing unproven ideas.

Source: Arstechnica