DTE Energy increases its five-year budget by 22% for data center power
Oct 30th -
DTE Energy, a Midwest-based electric utility in the United States, raised its five year capital investment plan on Thursday by $6.5 billion from $36.5 billion. This was due to the growing demand for electricity by data centers as well as efforts to modernize their power infrastructure.
U.S power demand hit records in 2025 and is expected to accelerate as Big Tech ramps up electricity use at its quickly-proliferating data centers, some of which require a city-sized amount of electricity at a single site. DTE, headquartered in Michigan has reached a first agreement for 1.4 gigawatts with a customer of a data centre, DTE executives announced on a conference call with investors.
DTE didn't name the client, but stated that it was a "hyperscaler", which is typically Big Tech. The project is expected to ramp up in the next two or three years.
The company has entered into discussions with hyperscalers to build another 6-7 gigawatts worth of data centers.
DTE's third-quarter profits also exceeded Wall Street expectations thanks to higher revenues from its electric division.
Utility said that its revised investment plan reflects company efforts to increase clean energy production and improve grid reliability.
DTE's plan for the future includes a total of $30 billion in electric revenue, $4.5 billion in gas revenues and $2 billion for DTE Vantage.
The report said that the expenditure could increase as more data centers are negotiated.
The company confirmed its operating earnings forecast for 2025 of $7.09 to $7.2 per share, and gave a 2026 outlook between $7.59 and $7.73.
According to LSEG, the Detroit-based company posted an operating profit per share of $2.25 for the three months ending September 30. This compares with analysts' estimates of $2.11, LSEG data shows. Reporting by Laila KEARNEY in New York; Varun Sahay, Sumit Saha and Deepa Babington in Bengaluru. Editing by Sahal M. Muhammed and Deepa B. Babington.
(source: Reuters)
