DTE Energy is in talks with Big Tech to supply power for 3 GW data centers
DTE Energy, a Detroit-based utility company, is in advanced discussions to supply more 3 gigawatts (GW) of electricity to Big Tech's data centers. The company expects to sign their first major contract by the end the year.
U.S. energy companies have been
Inundated with requests
Since early last year, the electricity is being provided to the energy-intensive computer centers that are needed to support the rapid growth of artificial intelligence in the technology industry.
Power consumption is at record levels, and utilities are increasing their infrastructure spending.
On a call to discuss the company's earnings, COO Joi Harri said: "Our goal is to close a deal by the end the year. We are making good progress."
Developers of data centers that require 3 GW have already acquired land and obtained various permits. DTE has begun discussions with potential data centers to supply up to 4 GW more electricity.
Harris stated that DTE would use its existing infrastructure to provide power for the businesses and will construct new batteries storage. She added that, in the longer term, new infrastructure, including natural gas-fired generation, will be required to meet the data center demand.
DTE's second-quarter earnings missed Wall Street expectations on Tuesday due to lower income in its gas and energy trading division.
The company's largest division by net profit, its electric segment, reported earnings of 318 million dollars in the quarter of April to June, compared with a profit $279 million dollars a year earlier.
The utility confirmed that it will achieve a profit of between $7.09 and $7.23 per share for the full year 2025.
According to LSEG data, analysts expect a profit of $7.22 per share for the full year.
DTE reported a profit adjusted per share of 1,36 dollars for the three-month period ended June 30. Analysts had expected $1.40. (Reporting from Laila K. Kearney, New York; Sumit S. Saha, Bengaluru. Editing by Pooja D. Desai & Joe Bavier.
(source: Reuters)
