Energy firms raise $12.6B in first-half IPOs as investors bet on AI infrastructure

Energy-focused companies raised $12.6 billion through initial public offerings in the first half of 2026, according to Dealogic. This total is the highest half-year amount since the dotcom bubble peak in late 1999 and surpasses the full-year 2025 total of $4.3 billion.

The fundraising surge coincides with growing recognition that power availability is a bottleneck for the AI industry’s expansion. A typical AI-focused data center consumes approximately 876,000 megawatt hours per year, an amount comparable to the annual household electricity usage of Glasgow or Salt Lake City.

US electricity demand is projected to increase 39% between 2026 and 2035, driven largely by data-center demand, according to consultancy ICF. This trend has prompted investors to shift from direct bets on AI chipmakers like Nvidia toward so-called “picks and shovels” infrastructure plays that enable power capacity expansion.

Energy-sector IPOs have attracted interest due to relatively lower valuations compared with information technology stocks. The energy sector trades at a price-to-earnings ratio of 18 times, while the information technology sector trades at 40 times, according to Bloomberg data.

Among recent IPOs, Forgent Power Solutions raised $1.7 billion in February by supplying electrical distribution equipment for data centers, and Innio completed a nearly $2.8 billion flotation in June by manufacturing gas engines for on-site data-center power generation.

However, signs of overheating have emerged. Nearly two-thirds of energy companies that went public in 2025 and 2026 are now trading below their offer price, according to Dealogic. This compares with fewer than 40% of IPOs across all sectors that are underwater.

Examples of underperformance include X-energy, which is developing small modular nuclear reactors and is backed by Amazon. X-energy’s shares are trading 33% below its $23 offer price after its April IPO, while ERock, a gas generator maker, has lost 42% of its value since its June IPO.