CenterPoint Energy increases its capex plan to $500 million due to the growing US demand for power
CenterPoint Energy, an electric and gas utility in the United States, increased its 10-year plan for capital expenditures by $500 million, as it focused on increasing power demand, especially in Texas. Company executives announced this on Thursday. Utilities are increasing their plans to invest in power infrastructure as AI data centers, the electrification and automation of transportation, and other industries drive up U.S. consumption.
CenterPoint's capital spending plan has been increased by $5 billion, to $53 billion.
CenterPoint provides electricity and natural gas for more than 7,000,000 customers in Indiana, Louisiana and Mississippi as well as Ohio, Texas, and Texas.
On a recent earnings call, company executives said that the company is currently in the process selling its Ohio gas division and focusing its efforts on the Texas segment. If the sale goes through, Texas will make up approximately 70% of the portfolio.
Texas has one of the fastest-growing markets for data centers. The business-friendly state is also attracting energy-intensive industries such as computer chip manufacturing.
CenterPoint predicts that the peak demand for electricity in the Houston region alone will increase by nearly 50% by 2031. According to a Lawrence Berkeley National Laboratory study, the power demand of U.S. data centres is expected to triple within the next three year and use up to 12% the total amount of electricity produced.
CenterPoint reported its second quarter profit which fell just short of analyst estimates due to higher expenses.
The cost of operations and maintenance increased by 5.5%, to $715 millions during the quarter ending June 30.
Net income dropped by 13%, to $198 Million.
According to LSEG, it posted an adjusted profit of 29 cents per share during the third quarter. This was lower than analysts' average estimates of 30 cents. Reporting by Laila Kerney in New York and Sumit Kalia and Katha Kaalia in Bengaluru. Editing by Shilpa Majumdar and Marguerita Chy.
(source: Reuters)
