Vanguard Group, the U.S. asset management giant, has raised its stake in Talen Energy Corp to 10.4%, according to a filing on Wednesday. The increase comes as the demand for electricity surges due to the expanding AI industry, which is driving the growth of power-hungry data centers.
Talen Energy, an independent power producer, stands to benefit from this rising demand. Vanguard, the second-largest shareholder of Talen Energy, purchased more than 4 million additional shares, bringing its total ownership to around 10.4%. As of October, Vanguard held approximately 9.9% of Talen's outstanding shares.
Talen Energy's stock has more than tripled in value throughout 2024, with shares slightly higher in extended trading on Wednesday. The company is well-positioned to capitalize on the growing need for electricity as AI technologies continue to advance.