NextEra Energy faces investor scrutiny over ability to serve Big Tech's demand for uninterrupted AI power.
NextEra Energy (NYSE: NEE) and Enbridge (NYSE: ENB) both just reported quarterly results, and the contrast between them matters for investors assessing how to play Big Tech's insatiable appetite for AI power. NextEra builds the plants. Enbridge moves the fuel. The earnings reveal why investors leaning on a pure renewables thesis may need to recalibrate.
NextEra posted Q1 adjusted EPS of $1.09, up 10% year-over-year, on revenue of $6.701 billion. Energy Resources added 4 gigawatts to backlog, lifting the total to roughly 33 gigawatts, including 1.3 gigawatts of battery storage. CEO John Ketchum said FPL is fielding "about 21 gigawatts of large load interest," with around 12 gigawatts in advanced talks. The Department of Commerce tapped NextEra to build 9.5 gigawatts of new gas-fired generation in Texas and Pennsylvania.
Enbridge reported adjusted EPS of $0.98, down from $1.03, while distributable cash flow rose to $3.85 billion. Mainline volumes averaged 3.2 million barrels per day, with CEO Greg Ebel noting the system has been "apportioned all year." Enbridge sanctioned the 300 MW Cone onshore wind project in Texas, extending its Meta partnership past 1 gigawatt of combined power generation.
The fundamental challenge underlying both companies' strategies is the intermittency problem. AI training models and data center campuses require continuous, 100% stable, always-on baseline power—something wind and solar cannot reliably deliver without cost-prohibitive utility-scale storage. Ketchum clearly understands this reality, which is why NextEra is restarting Duane Arnold's 615 MW reactor under a 25-year Google PPA and accepting a federal mandate to build gas generation. Enbridge sidesteps that execution burden entirely, earning take-or-pay fees on fuel that fires plants other companies build.
The near-term question for NextEra is whether it converts that 21 GW of FPL large load interest into signed tariffs by year-end and whether Duane Arnold stays on track for a Q4 2028 to Q1 2029 restart. For Enbridge, the 50-plus data center opportunities targeting new takeaway capacity represent the main variable. Ebel's C$40 billion sanctioned backlog already supports the company's 31st consecutive annual dividend increase, suggesting lower execution risk.
For investors seeking a defensive way to play surging AI power demand, Enbridge presents the more durable profile. The 6.8% yield is backed by contracted cash flows, leverage at 5.0x debt-to-EBITDA sits at the high end of the target range but remains manageable, and the gas-as-baseload narrative strengthens as hyperscalers prioritize 24/7 reliability. NextEra remains the higher-growth story, with 8% plus EPS CAGR through 2032 and visible hyperscaler wins. Yet the premium valuation, the $24.6 billion 2025 capex pace, and Q4 2025 EPS of $0.54 against a $0.92 consensus suggest execution expectations are high. For investors prioritizing capital preservation in an AI grid that punishes intermittency, ENB screens as the more defensive choice.