How to invest in AI without buying tech stocks

The conversations around artificial intelligence (AI) never get old. These conversations used to be futuristic, and now they are the present, and how it will shape the next five years. While you can talk forever about the possibilities of AI, we’re here to talk about how AI can make you the next big buck. With AI taking away jobs, it’s time to change your stance and make AI work for you instead of replacing you. How can you do that? Through passive income.

How to invest in AI without buying tech stocks

The real growth lies in technology, whether it concerns semiconductors, data centers or AI applications. These shares can offer you growth through the increase in the price of your share. However, energy and utility stocks can provide you with regular income.

AI energy stocks

The significant investments in AI data centers have contributed to this Nvidia And Broadcom The shares will now shift towards data center activities between November 2022 and November 2025. AI data centers consume a huge amount of electricity, and building multiple such data centers will boost electricity demand. Goldman Sachs Research expects global energy demand from data centers to increase by 50% by 2027 and by as much as 165% by 2030, compared to 2023.

Most of this demand will be met by natural gas-fired power plants, because these are faster and cheaper to build. It takes three to four years to expand a gas-fired power plant and five to seven years to build from scratch.

Capital power

Capital power (TSX:CPX) develops, acquires, owns and operates power generation facilities. It has a project pipeline of 25 gigawatts, the majority of which is through acquisition and development. The company has set a goal to grow the number of megawatts and margins by 2030. It aims to grow adjusted operating resources (AFFO) at a compound annual growth rate of 8-10%. It aims to grow the dividend by 2 to 4% and maintain a dividend payout ratio of 30 to 50% through 2030.

Capital Power shares are up 68% since April 2024, when the boom in AI infrastructure started driving energy demand. There are more benefits as many new AI data centers come online.

TC Energy

TC Energy (TSX:TRP) will benefit from growing demand for liquefied natural gas (LNG) in the United States and Europe. The company recorded the highest deliveries through its U.S. and Canadian natural gas pipeline systems of 39.9 billion cubic feet (Bcf) and 33.2 billion cubic feet (Bcf), respectively. Demand was driven by record power demand from data centers, coal-to-gas conversions and LNG exports.

TC Energy shares are up 65% since mid-2024 and could continue to grow through 2030 on demand for AI energy and LNG exports.

Keep in mind that the energy stocks mentioned above pay dividends regularly and have grown their dividends at 6% and 3% respectively. Additionally, they offer a Dividend Reinvestment Plan (DRIP). Investing in their DRIP option can help you build a passive income pool while your invested money literally powers AI.

AI telecommunications stocks

An AI data center will process and store data. However, to reach this data, the end user needs a strong, low-latency internet connection. Furthermore, the growing acceptance of AI in everyday work will lead to a growing demand for secure, high-speed internet in connected devices such as cars.

Broadband connectivity will be provided by the two major Canadian telecom companies, Telus And B.C (TSX:BCE). BCE offers enterprise AI solutions through Ateko, Bell Cyber ​​and Bell AI Fabric, Canada’s full-stack sovereign AI platform. It expects to generate $1.5 billion in AI revenue by 2028. This amount represents only 6% of 2025 revenues of $24.4 billion, as core revenues will come from telecom and communications systems. Even Telus has merged its digital solutions business that offers AI services. They both offer quarterly dividends and a DRIP option.