• Education
    • Higher Education
    • Scholarships & Grants
    • Online Learning
    • School Reforms
    • Research & Innovation
  • Lifestyle
    • Travel
    • Food & Drink
    • Fashion & Beauty
    • Home & Living
    • Relationships & Family
  • Technology & Startups
    • Software & Apps
    • Startup Success Stories
    • Startups & Innovations
    • Tech Regulations
    • Venture Capital
    • Artificial Intelligence
    • Cybersecurity
    • Emerging Technologies
    • Gadgets & Devices
    • Industry Analysis
  • About us
  • Contact
  • Advertise with Us
  • Privacy & Policy
Today Headline
  • Home
  • World News
    • Us & Canada
    • Europe
    • Asia
    • Africa
    • Middle East
  • Politics
    • Elections
    • Political Parties
    • Government Policies
    • International Relations
    • Legislative News
  • Business & Finance
    • Market Trends
    • Stock Market
    • Entrepreneurship
    • Corporate News
    • Economic Policies
  • Science & Environment
    • Space Exploration
    • Climate Change
    • Wildlife & Conservation
    • Environmental Policies
    • Medical Research
  • Health
    • Public Health
    • Mental Health
    • Medical Breakthroughs
    • Fitness & Nutrition
    • Pandemic Updates
  • Sports
    • Football
    • Basketball
    • Tennis
    • Olympics
    • Motorsport
  • Entertainment
    • Movies
    • Music
    • TV & Streaming
    • Celebrity News
    • Awards & Festivals
  • Crime & Justice
    • Court Cases
    • Cybercrime
    • Policing
    • Criminal Investigations
    • Legal Reforms
No Result
View All Result
  • Home
  • World News
    • Us & Canada
    • Europe
    • Asia
    • Africa
    • Middle East
  • Politics
    • Elections
    • Political Parties
    • Government Policies
    • International Relations
    • Legislative News
  • Business & Finance
    • Market Trends
    • Stock Market
    • Entrepreneurship
    • Corporate News
    • Economic Policies
  • Science & Environment
    • Space Exploration
    • Climate Change
    • Wildlife & Conservation
    • Environmental Policies
    • Medical Research
  • Health
    • Public Health
    • Mental Health
    • Medical Breakthroughs
    • Fitness & Nutrition
    • Pandemic Updates
  • Sports
    • Football
    • Basketball
    • Tennis
    • Olympics
    • Motorsport
  • Entertainment
    • Movies
    • Music
    • TV & Streaming
    • Celebrity News
    • Awards & Festivals
  • Crime & Justice
    • Court Cases
    • Cybercrime
    • Policing
    • Criminal Investigations
    • Legal Reforms
No Result
View All Result
Today Headline
No Result
View All Result
Home Technology & Startups

US power stocks plummet as DeepSeek raises data center demand doubts

January 28, 2025
in Technology & Startups
Reading Time: 3 mins read
A A
0
2
SHARES
5
VIEWS
Share on FacebookShare on Twitter


By Laila Kearney and Liz Hampton

NEW YORK/HOUSTON (Reuters) – Shares of U.S. power, utility and natural gas companies sold off on Monday in some of the biggest recorded one-day drops, as new AI technology from Chinese start-up DeepSeek cast doubt on a projected surge in U.S. electricity demand and tech spending.

Power producers were among the biggest winners in the S&P 500 last year on expectations of ballooning demand from the energy-guzzling data centers needed to scale Big Tech’s artificial intelligence technologies.

The wider adoption of AI models like the one developed by DeepSeek, which it says it built in under two months and is cheaper than models currently used by U.S. companies, could result in less electricity demand overall and result in a smaller power build-out, analysts and economists said.

“If proven true, the efficiencies used within DeepSeek’s open-source model can be applied by the hyperscalers to their models, which would result in a more moderated demand,” analysts with Evercore ISI said in a note.

Big Tech firms, which are also known as hyperscaling data center developers, have devoted tens of billions of dollars in AI data center development over the last year.

In the U.S., data centers consumed roughly 4.4% of electricity in 2023 but are anticipated to use 6.7% to 12% of all power by 2028, according to a report produced by the Lawrence Berkeley National Laboratory.

Independent power provider Constellation Energy, whose shares had shot up about 100% in 2024 largely on its ability to sell nuclear and gas-fired power to U.S. data centers, sunk by about 20% in trading on Monday after news of DeepSeek’s advancements.

Vistra was down 30% and rival Talen Energy Corp was down 22%.

DeepSeek AI could also threaten the dominance of current AI leaders, which are based in Silicon Valley, and slow their deployment of data centers. DeepSeek’s AI assistance had overtaken U.S. rival ChatGPT in downloads from Apple’s app store on Monday.

But with the wider adoption of AI, even with more energy-efficient models, power demand could surge everywhere, said Ed Hirs, an energy economist at the University of Houston. He cautioned that a sell-off of power stocks could be short-sighted and short-lived.

“In this instance, if DeepSeek turns out to be what everybody wants, and they sell to U.S. companies, and the U.S. companies change their algorithms to adopt to it, it just means a greater, faster broader development,” Hirs said.

Still, electricity companies, and even producers of feedstocks related to power generation, were under pressure.

Earlier this month, Constellation acquired private natural gas producer Calpine Energy for $16.4 billion in one of the largest U.S. power industry deals ever, a sign of rising expectations that demand for gas will grow as a generation source for AI.

Shares of publicly-traded producers of natural gas, which makes up the biggest share of fuels used to generate electricity in the United States, also slumped.

EQT Corp was off 9%. Midstream operator Energy Transfer, which said it has received connection requests from dozens of data centers, was down about 7%.

(Reporting by Liz Hampton in Houston and Laila Kearney in New York; Editing by Sonali Paul)

Tags: data centerselectricity demandpower demand
Previous Post

Canadian veteran released by Taliban after more than two months

Next Post

Irish president accused of ‘politicising’ Holocaust event

Related Posts

Sam Altman said AI agents are acting like junior employees — and he’s betting that your AI colleague could soon ‘discover new knowledge’

June 3, 2025
6

Oil rises on Iran, Russia and Canada supply concerns

June 3, 2025
6
Next Post
Download app from appStore

Irish president accused of 'politicising' Holocaust event

  • Trending
  • Comments
  • Latest
Family calls for change after B.C. nurse dies by suicide after attacks on the job

Family calls for change after B.C. nurse dies by suicide after attacks on the job

April 2, 2025
Pioneering 3D printing project shares successes

Product reduces TPH levels to non-hazardous status

November 27, 2024

Hospital Mergers Fail to Deliver Better Care or Lower Costs, Study Finds todayheadline

December 31, 2024

Police ID man who died after Corso Italia fight

December 23, 2024
Harris tells supporters 'never give up' and urges peaceful transfer of power

Harris tells supporters ‘never give up’ and urges peaceful transfer of power

0
Des Moines Man Accused Of Shooting Ex-Girlfriend's Mother

Des Moines Man Accused Of Shooting Ex-Girlfriend’s Mother

0

Trump ‘looks forward’ to White House meeting with Biden

0
Catholic voters were critical to Donald Trump’s blowout victory: ‘Harris snubbed us’

Catholic voters were critical to Donald Trump’s blowout victory: ‘Harris snubbed us’

0
Trump orders pause on military aid to Ukraine in the wake of last week's Oval Office clash with Zelenskyy

DHS says FEMA head was joking when he said he wasn’t aware of hurricane season

June 3, 2025

Education Department pausing plan to garnish Social Security checks over defaulted loans

June 3, 2025
The Straits Times logo

2 Japanese killed in China’s Dalian, Chinese suspect detained

June 3, 2025

Sam Altman said AI agents are acting like junior employees — and he’s betting that your AI colleague could soon ‘discover new knowledge’

June 3, 2025

Recent News

Trump orders pause on military aid to Ukraine in the wake of last week's Oval Office clash with Zelenskyy

DHS says FEMA head was joking when he said he wasn’t aware of hurricane season

June 3, 2025
4

Education Department pausing plan to garnish Social Security checks over defaulted loans

June 3, 2025
5
The Straits Times logo

2 Japanese killed in China’s Dalian, Chinese suspect detained

June 3, 2025
5

Sam Altman said AI agents are acting like junior employees — and he’s betting that your AI colleague could soon ‘discover new knowledge’

June 3, 2025
6

TodayHeadline is a dynamic news website dedicated to delivering up-to-date and comprehensive news coverage from around the globe.

Follow Us

Browse by Category

  • Africa
  • Asia
  • Basketball
  • Business & Finance
  • Climate Change
  • Crime & Justice
  • Cybersecurity
  • Economic Policies
  • Elections
  • Entertainment
  • Entrepreneurship
  • Environmental Policies
  • Europe
  • Football
  • Gadgets & Devices
  • Health
  • Medical Research
  • Mental Health
  • Middle East
  • Motorsport
  • Olympics
  • Politics
  • Public Health
  • Relationships & Family
  • Science & Environment
  • Software & Apps
  • Space Exploration
  • Sports
  • Stock Market
  • Technology & Startups
  • Tennis
  • Travel
  • Uncategorized
  • Us & Canada
  • Wildlife & Conservation
  • World News

Recent News

Trump orders pause on military aid to Ukraine in the wake of last week's Oval Office clash with Zelenskyy

DHS says FEMA head was joking when he said he wasn’t aware of hurricane season

June 3, 2025

Education Department pausing plan to garnish Social Security checks over defaulted loans

June 3, 2025
  • Education
  • Lifestyle
  • Technology & Startups
  • About us
  • Contact
  • Advertise with Us
  • Privacy & Policy

© 2024 Todayheadline.co

Welcome Back!

OR

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Business & Finance
  • Corporate News
  • Economic Policies
  • Entrepreneurship
  • Market Trends
  • Crime & Justice
  • Court Cases
  • Criminal Investigations
  • Cybercrime
  • Legal Reforms
  • Policing
  • Education
  • Higher Education
  • Online Learning
  • Entertainment
  • Awards & Festivals
  • Celebrity News
  • Movies
  • Music
  • Health
  • Fitness & Nutrition
  • Medical Breakthroughs
  • Mental Health
  • Pandemic Updates
  • Lifestyle
  • Fashion & Beauty
  • Food & Drink
  • Home & Living
  • Politics
  • Elections
  • Government Policies
  • International Relations
  • Legislative News
  • Political Parties
  • Africa
  • Asia
  • Europe
  • Middle East
  • Artificial Intelligence
  • Cybersecurity
  • Emerging Technologies
  • Gadgets & Devices
  • Industry Analysis
  • Basketball
  • Football
  • Motorsport
  • Olympics
  • Climate Change
  • Environmental Policies
  • Medical Research
  • Science & Environment
  • Space Exploration
  • Wildlife & Conservation
  • Sports
  • Tennis
  • Technology & Startups
  • Software & Apps
  • Startup Success Stories
  • Startups & Innovations
  • Tech Regulations
  • Venture Capital
  • Uncategorized
  • World News
  • Us & Canada
  • Public Health
  • Relationships & Family
  • Travel
  • Research & Innovation
  • Scholarships & Grants
  • School Reforms
  • Stock Market
  • TV & Streaming
  • Advertise with Us
  • Privacy & Policy
  • About us
  • Contact

© 2024 Todayheadline.co