The next great artificial intelligence (AI) investment may have considerably more turbines than microchips. AI requires enormous data centres; those data centres require relentless electricity, and someone must keep the power flowing when the sun disappears and the wind decides it has other plans.
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Closer than we think
This isn’t a distant problem. The International Energy Agency (IEA) expects global data-centre electricity consumption to roughly double from 2025 levels to approximately 950 terawatt-hours (TWh) by 2030. AI-focused facilities should grow even faster, tripling their power use over that period. That creates an unusually attractive setup for companies already capable of producing dependable electricity.
Utility investments can also provide income while that demand develops. A dividend yield shows the annual payment as a percentage of the share price, yet investors should also examine payout coverage and dividend growth. A massive yield backed by shrinking cash flow can become a very expensive souvenir. A moderate yield supported by rising cash generation may keep growing for years.
Investors can reinvest those payments to buy additional shares, allowing each dividend to help produce the next one. Inside a Tax-Free Savings Account (TFSA), that income and growth can remain tax-free, provided the investor has enough available contribution room. Unused room carries forward, while withdrawals generally return as new room the following calendar year. That makes quality Canadian dividend stocks particularly useful for building a future income stream.
CPX’s AI opportunity
Capital Power (TSX:CPX) looks built for that job. The Edmonton-based company owns natural-gas, wind, solar, and battery-storage facilities across Canada and the United States. Unlike a traditional regulated utility, it also sells electricity into competitive markets and signs long-term contracts with large customers. That creates more volatility, but it can also produce considerably more growth.
The latest evidence arrived during the second quarter. CPX stock generated $328 million in adjusted funds from operations (AFFO), up from $235 million one year earlier. That’s key, as AFFO measures cash available for expenses such as dividends, debt repayment, and growth investments. Management also reaffirmed its 2026 guidance and raised the dividend for the 13th consecutive year.
The more exciting development came from Meta Platforms. CPX stock signed an agreement lasting more than 10 years to provide 250 megawatts (MW) of electricity and capacity for Meta’s Alberta data centre. It’s exactly how rising AI power demand can become contracted cash flow rather than an impressive chart in an investor presentation.
Earning income
CPX stock recently traded near $65.91, approximately 14% below their 52-week high. At that price, the stock trades around 11 times the midpoint of management’s 2026 AFFO guidance and offers a 4.3% dividend yield. That looks attractive beside many Canadian utility stocks carrying slower growth and considerably richer valuations.
A $30,000 investment would purchase 455 full shares, leaving a few dollars uninvested. CPX stock’s new quarterly dividend of $0.70 equals $2.82 annually, producing approximately $1,282.74 per year. Averaged across 12 months, that works out to $106.89, or roughly $107 per month.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | ANNUAL DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| CPX | $65.91 | 455 | $2.82 | $1,282.74 | Quarterly | $29,989.05 |
The payments arrive quarterly rather than monthly, so investors would need to budget accordingly. Reinvesting them could gradually increase the share count and future income, while management’s dividend-growth target of 2% to 4% through 2030 provides another potential boost. Neither the payment nor that growth target is guaranteed, of course.
Bottom line
CPX stock faces commodity-price exposure, substantial financing needs, and the possibility of unexpected plant outages. Its expansion through acquisitions also introduces integration risk, while data centre projects can face permitting or construction delays. This isn’t a sleepy regulated utility investors can purchase and immediately forget, besides the furnace filter.
Still, the combination of a discounted share price, growing dividend, rising electricity demand, and a major Meta contract creates an appealing entry point. Capital Power can pay investors roughly $107 per month on average today, while AI’s growing appetite for electricity could keep expanding both the company and that income well beyond 2030.
