Vistra and Constellation Slump, as Efficient AI and Grid Hurdles Cool Demand

Independent power producers Vistra and Constellation Energy are leading a sharp downturn in the power generation sector.

Investors are reassessing previously bullish outlooks for massive electricity demand driven by AI data centers.

New, more efficient AI models from startups like DeepSeek have raised doubts regarding long-term energy consumption forecasts.

Regulatory hurdles are increasing, including a halt on new grid connections in Texas.

Growing local community opposition to data center projects adds further uncertainty to the pace of sector development.