(Reuters) – Dominion Energy raised its five-year capital expenditure plan on Wednesday as the utility firm sought to cash in on the potential growth in power demand from a rise in data centers across the U.S.
The Richmond, Virginia-based company expects to spend $50.1 billion in the 2025 to 2029 period, up from $43.2 billion estimated previously.
Power demand in the U.S. is expected to rise to record highs in 2025 and 2026 due to growing demand from data centers dedicated to artificial intelligence and cryptocurrency, as well as from homes and businesses for heat and transportation, according to the U.S. Energy Information Administration.
Dominion said data centers contracted 88% more power capacity, or 19 gigawatts (GW), in December as compared to July.
However, it narrowed its 2025 operating earnings forecast to between $3.28 and $3.52 per share, compared with a range of $3.25 to $3.54 per share earlier.
Shares of the utility firm fell nearly 2% in early trading.
For the fourth quarter, the company also posted operating earnings of 58 cents per share, beating analysts’ estimates by 2 cents, according to data from LSEG.
The profit beat was aided by a $119-million tax benefit that offset lower revenues and higher operational expenditure.
Its electric and gas service areas saw an 8.6% fall in heating degree days – a measure of energy demand for space heating – in the quarter.
“We delivered 2024 operating earnings per share in the top half of our guidance range despite worse-than-normal weather in our regulated service areas,” said Dominion CEO Bob Blue.
Dominion also incurred a charge of $276 million for certain costs it did not expect to recover from its wind energy project off the coast of Virginia.
(Reporting by Seher Dareen in Bengaluru; Editing by Leroy Leo)
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