The US capital markets are being reshaped by the artificial intelligence boom, with utilities emerging as the primary sellers of subordinated securities.

Demand for electricity to support AI data centers has led companies like Dominion Energy Inc. and CenterPoint Energy Inc. to collectively raise nearly $18 billion in 2024, a significant increase from the previous year.

This shift has resulted in utilities surpassing traditional financial institutions, such as US banks, in capital generation, highlighting the growing connection between energy needs and technological advancements.

The increase in funding reflects the pressing requirement for infrastructure to accommodate the expanding AI sector, positioning utilities at the forefront of this financial transformation.