15 Best European AI Stocks According to Morgan Stanley

11. Iberdrola, S.A. (OTC:IBDRY)

Number of Hedge Fund Holders: N/A 

Iberdrola, S.A. (OTC:IBDRY) is a Spanish firm that engages in the generation, transmission, distribution, and supply of electricity in Spain, the United Kingdom, the United States, Mexico, Brazil, Germany, France, and Australia. AI data centers have created a need for power that is likely to drive utility firms towards upgradation of their existing capacities to accommodate rising demand. This rise in demand for power due to AI can be explained by the fact that a ChatGPT, an AI-powered tool, query takes ten times more electricity than is needed to process a simple Google, a traditional search engine, query.

Iberdrola, S.A. (OTC:IBDRY) is likely to be one of the biggest beneficiaries of this boom. According to a recent study by investment bank Goldman Sachs, total data center power demand will go up from 400 TWh in 2023 to 1,100 TWh by the end of this decade. In other words, demand will nearly triple within the next five years. European utility firms, with a much healthier mix of renewables in their portfolios, will find it easier to accommodate this at cheaper rates than their fossilized American counterparts.