DTE Energy increases its five-year plan to spend $6.5 billion on data centers power demand

Oct 30 – DTE Energy raised its capital investment plan for the next five years by $6.5 billion. This was due to an increase in electricity demand by data centers, and to efforts to modernize utility assets.

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 represents a 22% increase over its previous plan for 2025-2029, and reflects its push to expand clean-energy generation and improve grid reliability.

As power demand increases across the nation, utilities add billions of dollars in capital investment plans for upgrades to electrical grids and related infrastructure.

According to the U.S. Energy Information Administration, a surge in AI- and cryptocurrency-based data centers combined with an accelerating electrification in homes and businesses is expected to drive U.S. electricity demand to record levels by 2025 and 2026.

DTE's plan for the future includes $30 billion in electric revenue, $4.5 billion in gas revenues and $2 billion to be spent on 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 - $7.23 per share, and gave a 2026 outlook between $7.59 - $7.73.

According to LSEG, the Detroit-based company posted an operating profit per share of $2.25 for the three-month period ended September 30. This was compared to analyst estimates of $2.11, which were based on data compiled by LSEG. Reporting by Varun Sahay in Bengaluru and Sumit Saha; editing by Sahal Muhammad

(source: Reuters)