If you're seeking an investment opportunity in the AI sector without the excessive hype, this stock is a straightforward choice.

Investing in AI without the fuss? This stock is an obvious choice for purchase

Virginia, one of the largest data center markets in the world, is set to witness a significant surge in electricity demand due to the growth of artificial intelligence (AI). This increase is projected to be 300% over the next decade, according to recent projections.

At the heart of AI's operations is the data center, requiring a constant supply of electricity to function. This surge in demand has already been reflected in the figures of Dominion Energy, a regulated electric utility operating in Virginia. In the second half of 2024, Dominion Energy experienced an 88% growth in demand from data centers.

Dominion Energy's strategic location in Virginia positions it well to capitalise on this growing market. The company, which operates as a monopoly in the region, is now considered an attractive growth and income stock. Investors stand to collect a fat dividend while the business benefits from the AI revolution.

The overall growth in electricity demand is expected to increase from 9% between 2000 and 2020 to 55% between 2020 and 2040. To cater to this rising demand, most of the data centers are expected to be new buildings, requiring construction of generating capacity and power lines.

Dominion Energy is better positioned than any other utility to benefit from this increased electricity demand caused by AI. The company is working with its regulators on its capital investment plans to ensure it can meet this demand.

Compared to AI companies like Nvidia, Dominion Energy is an anti-hype stock. However, its growth in the future is expected to be less slow than it has been in the past, making it a low-risk turnaround story in the utility sector.

Dominion Energy plans to support the rising electricity demand for artificial intelligence by securing and providing the necessary power supply for new and expanded data centers in Virginia. This includes Google’s new AI infrastructure projects, which are expected to contribute significantly to the region's data center market. The company intends to utilise already developed areas for electricity production as part of its corporate strategy.

With a dividend yield of 4.4%, significantly higher than the average utility's yield of around 2.7%, Dominion Energy offers an attractive return on investment for those looking to capitalise on the AI revolution.