The AES Corporation (AES) Stock Analysis

AES’s primary competitive advantage is its scale and execution in U.S. renewables, particularly as a supplier to hyperscale data center operators. As of 2025, over 40% of AES’s U.S. renewables backlog is contracted with technology leaders such as Amazon, Microsoft, and Google—far higher than most peers. For context, AES has signed more than 5.9 GW of power purchase agreements (PPAs) with these three companies alone, compared to lower volumes for rivals like NextEra or Duke Energy in the same customer segment.

AES’s project pipeline is among the largest in the industry, with a 51 GW U.S. development pipeline and a 12 GW contracted backlog. This scale enables procurement advantages, supply chain resilience, and cost efficiencies. Unlike some competitors, AES has not had to abandon projects due to cost inflation or supply disruptions, reinforcing its reputation for reliability among premium customers.

Innovation is another differentiator. AES is an early mover in grid-scale energy storage, 24/7 renewable PPAs, and digital project delivery (e.g., robotics, AI-enabled grid management). Its partnerships with leading technology firms and the AI Fund further embed it in the fastest-growing segment of power demand.

While AES faces high leverage and execution risk, its customer concentration in data centers, proven delivery record, and ability to secure long-term contracts position it favorably against both traditional utilities and pure-play renewables developers.