This Global Utility Stock Looks Very Cheap Right Now as It Invests Nearly $2 Billion in the U.S. Energy Buildout Chris MacDonald Thu, July 2, 2026 at 8:17 AM PDT 5 min read NG.L electricity power lines by Couleur via Pixabay We're seeing a utilities boom like we haven't in quite some time. Indeed, since the rise of the internet, I don't think we've seen this many infrastructure and utilities companies in the limelight as we're seeing now. One company that's starting to grab investor attention in a big way is National Grid (NGG), a U.K.-based electricity and gas utility company. Serving much of the United Kingdom, National Grid is a company that's not often on investors' radar screens, but that could mean that it's an interesting opportunity to consider. More News from Barchart Nat-Gas Prices Fall on Expectations of a Large Weekly Storage Build Back-to-Back Upgrades Signal Rising Institutional Support for FuelCell Energy Stock Crude Prices Slide as Geopolitical Risks Ease Stop Missing Market Moves: Get the FREE Barchart Brief your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! Why is that, you might ask? Well, National Grid just announced a big move on Wednesday to invest $1.75 billion in a U.S. artificial intelligence (AI) power infrastructure company, supporting the data center buildout. Let's dive more into this deal and why NGG stock has been seeing so much volatility following the news. www.barchart.com The Data Center Boom Will Require a Lot of Power This $1.75 billion deal is significant in that it signals to investors that global utility players want a piece of what the U.S. market has to offer. Indeed, the data center buildout that's happening in the U.S. (and around the world) will inevitably result in a surge of power demand. The particular company National Grid is investing in is Joulent, a company that's currently looking to undertake a massive 2.67 gigawatt (GW) project in Texas. In combination with Chevron (CVX), which is part of the joint venture to put this project together, National Grid looks to increase its exposure to the U.S. market and grab a slice of the tech-driven power demand many investors are after. Notably, this project should benefit from its geographic proximity to cheaper natural gas in the Permian Basin. Additionally, the fact that Microsoft (MSFT) is the key player looking to ultimately utilize the power generated by this facility in a long-term contract means that the sorts of long-term cash flows this project looks to generate should be increasingly stable. How Could This Deal Impact National Grid's Fundamentals? Looking at National Grid's underlying balance sheet and income statement strength below, one could argue this is a company that doesn't need to take this deal on. Story Continues www.barchart.com Trading at almost 14 times forward earnings and with a price-earnings-to-growth (PEG) ratio of just 1.15, that's dirt cheap in the world of utility stocks today. Undoubtedly, utilities have been among the leading...
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