Clean Energy and Power Infrastructure: 2026 March Madness
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JPMorgan projects that US power generation capacity must double by 2050, driven by reshoring, electrification, data centers, and population growth. The firm estimates that US data centers alone will add approximately 120 gigawatts (GW) of power demand by 2030. In 2025, global gas turbine orders surged 72% year-over-year, with North American orders soaring 160%. GE Vernova's (GEV) backlog plus service agreements reached 83 GW, more than double the 36 GW recorded at the end of 2024.
Within renewables, energy storage posted the highest growth globally, with deployments up roughly 34% year-over-year. Conversely, US utility-scale solar remained flat due to tariff delays, and US residential solar is expected to decline by 20-25% in 2026.
For 2026, the outlook emphasizes baseload power and identifies Engineering, Procurement, and Construction (EPC) as a growing industry bottleneck. JPMorgan favors companies with strong backlogs and pricing power. GE Vernova remains a top pick due to its backlog visibility and robust cash flow. MasTec (MTZ) and Quanta Services (PWR) are preferred EPC plays. Nextracker (NXT) and Brookfield Renewable Partners (BEP) are expected to benefit from increasing project complexity and industry consolidation.
Policy clarity has improved compared to the first half of 2025, though risks remain regarding final foreign entity of concern rules, Section 232 tariffs, and anti-dumping duties. Top picks include GEV (Overweight, $1,000 target), MTZ (Overweight, $346), and NXT (Overweight, $125).