AES Stock Jumps 16%. Why the AI Data Center Play Is Soaring.

AES shares were rising on Wednesday after a report said the renewable power company was exploring options including a potential sale. (PATRICK T. FALLON/AFP via Getty Images)

AES stock was surging Wednesday after a report said the renewable power company was exploring options including a potential sale.

Shares jumped 16% to $12.86 on Wednesday. The S&P 500 was up 0.6%.

AES is exploring its options, including a possible sale, amid potential takeover interest from large investment firms, Bloomberg reported, citing people familiar with the matter. Several major private-equity firms and infrastructure investors have been studying AES after the stock lost about half its value over the past two years, according to the report.

When reached for comment from Barron’s, a spokesperson for AES said the company does “not respond to rumors in the marketplace” as a policy.

Coming into Wednesday, AES stock had declined 37% over the past 12 months, dragged down by tumbling revenue as well as concern about the Trump administration’s rollback of clean-energy tax credits.

In recent years, AES has brokered deals to provide renewable energy for data centers owned and operated by Big Tech companies including Microsoft, Google owner Alphabet, and Facebook parent Meta Platforms.

Write to George Glover at george.glover@dowjones.com