Utilities stocks have already outperformed the S&P 500 (^GSPC) as electricity demand surges, even as tariff uncertainty raises questions about the recession.

The S&P 500 Utilities Choice ETF (XLU) grew 6%, while the broad-based index fell nearly 4%, technology fell 6%, and consumer discretion (XLC) stocks fell nearly 10%.

Although utility stocks fell along with stocks in other markets following President Trump’s tariff policy announcement on April 2, their declines were not as severe as other sectors.

“Overall, utilities appear to be affected by the least by tariffs,” CFRA analyst Daniel Rich told Yahoo Finance. “The vast majority of utilities’ capital investment budgets depend on U.S. labor, materials and energy.”

The industry's performance has earned about 23% in 2024 at a rate of about 23% in 2024, as the AI ​​boom, growth in data centers, and efforts in onshore manufacturing have stimulated increased demand for electricity.

Despite fears of a recession in the global trade war, this demand is strong.

“There is no sign of a recession in electricity demand,” Goldman Sachs analysts said Tuesday night. “The U.S. electricity demand has grown by 5.5% year to date, compared with an average annual growth rate of 0.6% over the past decade.”

Analysts say all power demand sectors contributed to this growth, including residential.

The Energy Information Administration expects that power demand in the industrial sector will grow the fastest this year as new semiconductor and battery manufacturing operations go online. The energy consumption of data centers is also expected to increase.

On Tuesday, Energy Holding Giant Duke Energy (DUK) announced it signed an April agreement involving two customers’ data center projects.

Duke CEO Harry Sideris told analysts on the company's revenue call that referring to the growing demand for revenue in the United States.

To date, Duke Energy's stock has grown 11% per year. Its peers Exelon (EXC) and Southern Corporation (SO) also grew nearly 20% and 10% respectively.

On Wednesday, Google (GOOG, GOOGL) announced a collaboration with Advanced Nuit Project Developer Elementl Power, another sign of Big Tech's continued dissatisfaction with electricity.

This was in September’s partnership between Microsoft (MSFT) and energy giant Constellation Energy (CEG) and last March the purchase of Amazon (AMZN) from energy provider Talen Energy (TLN).