Goldman Sachs has identified a significant opportunity for electricity companies in Europe due to the rapid expansion of data centers and a projected average increase in electricity bills of only 2% to 4% per year over the next decade, which is lower than previous expectations. This outlook alleviates concerns about the high costs of infrastructure investment for electrification.
The firm has recommended several stocks poised to benefit from this trend, particularly in the wind energy sector. Notably, Ørsted, a Danish wind energy leader, is expected to thrive as Europe shifts its energy policy towards offshore wind power. Goldman also favors EDPR, a major Portuguese renewables firm, due to its substantial U.S. operations, which are currently undervalued.
Additionally, German onshore wind provider Nordex is highlighted for its improving margins and strong order growth, with its shares already up 30% this year. Overall, Goldman believes that the wind energy sector is positioned for continued strong performance, especially following recent positive results in the first quarter