The list of megatrends investors have had the fortune (or misfortune, perhaps) of following in recent years is as long as it is aggravating in some respects. Whether investors climbed into the social media, electric vehicles (EVs), crypto, metaverse, gaming, artificial intelligence (AI), or quantum computing sectors at the right times really dictated how well they would have done in playing such trends. The returns posted by investors who have focused a disproportionate amount of their portfolios on such trends will vary widely, depending on exactly when investors choose to make the leap into such growth areas of the economy.
Moving forward, it’s pretty clear many investors remain tethered to the idea that AI will be the revolutionary technology to focus on for the next decade or two. I’m not going to disagree with that view, and I think that companies everywhere will be utilizing AI to a greater degree in the years and decades to come.
That said, I’m focusing on another megatrend tied to the AI revolution that I think could be more impactful in the near, medium, and long term. Here’s why I think investors may want to pay a lot closer attention to energy usage (and the energy transition) moving forward.
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We’re gonna need more energy
In order to power the vast number of data centres under development and support the other aforementioned growth areas of the economy, which are far from dead (gaming, quantum computing, EVs and other technologies will suck up tremendous amounts of power), energy consumption will remain on the rise.
Any expert who says that we could see energy demand decline over the long term is likely kidding themselves. We’re in a technology-driven economy, whether we like it or not. Indeed, the AI revolution will bring about plenty in the way of changes that we may or may not like over time. But one thing’s for certain: we’re going to need more energy.
The good news for Canadian investors is that there are plenty of Canada-based energy companies to choose from that can benefit from this trend. The two picks I continue to pay close attention to are Suncor and Enbridge.
Utilities companies likely to continue to rally
As an offshoot of this trend, utility providers (those actually providing households and businesses with electricity or natural gas) will continue to see top and bottom-line growth, all else being equal. And considering how well utility giants like Fortis (TSX:FTS) have performed thus far in 2025 (and for a few years, for that matter), I think the demand for this company’s shares should only surge over time as this megatrend accelerates.
Fortis has benefited from strong investor demand from those seeking reliable and consistent cash flows, as well as from dividend investors seeking out top-tier dividend stocks with rock-solid balance sheets to buy in this environment.
Bottom line
Energy consumption trends will likely benefit a number of companies in various jurisdictions. That said, I think Canadian energy companies are still relatively overlooked, and these three stocks are companies I think should broadly benefit over time.
