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AES is a utility company that provides energy solutions for residential customers and hyperscalers.
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While Applied Digital has fewer gigawatts, it also produces artificial intelligence (AI) data centers, which is a critical difference.
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Applied Digital strengthened its balance sheet by raising funds that will be used to complete AI data center projects, opening the doors to more lucrative deals in the future.
AES Corp. (NYSE: AES) is a U.S. utility company that serves residential customers in Ohio and Indiana, with long-term plans to expand into fulfilling energy needs for data centers. The company’s 11.1-gigawatt pipeline, which includes 4 gigawatts that are allocated for hyperscaler customers, ensures AES can serve residential customers and tech giants.
For a utility company, that sounds like a strong business model and a potential to invest in the growth of artificial intelligence (AI) in this economy. However, AES isn’t the best way to invest in AI as it relates to energy usage. Applied Digital (NASDAQ: APLD) looks like the better pick, and the fact that its share price has almost tripled over the past year, while AES stock is only up by 14% during the same time frame, provides some proof of that.
Admittedly, AES has a vast multi-gigawatt pipeline, but Applied Digital has gigawatts and AI data centers. The fact that Applied Digital owns both of these assets improves its long-term outlook in comparison to AES. It also explains why the companies have different growth trajectories, despite both providing electricity to tech companies.
For instance, AES delivered 2% year-over-year revenue growth in Q3 2025, while Applied Digital boosted its sales by 84% year over year during the same stretch. One of these companies is mature, while the other is entering the early stages of hypergrowth.
Applied Digital continues to sign lucrative deals with its energy and AI data centers. For instance, it secured a 15-year contract with CoreWeave that will result in approximately $11 billion in revenue. The deal allocates 400 megawatts to CoreWeave, highlighting the potential of this growth stock. While AES has more megawatts, Applied Digital has the potential to earn far more money per megawatt.
Applied Digital also has a multi-gigawatt pipeline, which will give it more energy to support multiple deals like the 15-year CoreWeave contract.
The AI data center builder also cited “active and increasing hyperscaler interest” and “unprecedented levels” of demand for advanced infrastructure in its Q1 FY26 press release. This backdrop gives Applied Digital the flexibility to build more data centers and invest more capital, knowing that strong buyer demand is compounding.
