NextEra eyes nuclear power expansion as data center pipeline grows
NextEra Energy may expand its nuclear fleet in order to provide electricity for?data centres. The giant U.S. energy provider said on Tuesday that they are 'in advanced discussions' to power 9 more gigawatts to the server warehouses. Big Tech's massive data centers have pushed up the demand for electricity in the United States, which has led to historic agreements with electric utilities across the country, including the revivals of several shut down nuclear power plants. NextEra announced last year that it would restart the Duane Arnold nuclear power station in Iowa for Google data centers. NextEra said on a Tuesday call with investors that it could add 6 gigawatts to its existing nuclear sites to support data centers. The company is also looking at greenfield sites for advanced nuclear power. The company's fourth-quarter profits surpassed Wall Street expectations on Tuesday. This was due to steady growth in its Florida utility, a record year of renewable energy, and the addition of battery storage, and an increase in electricity demand across the United States. According to the Energy Information Administration, the U.S. power consumption is set to reach new all-time records in 2026 as data centers for AI (artificial intelligence) and cryptocurrency expand and households and businesses replace fossil fuels for heating and transportation with electricity.
Florida Power & Light's regulated utility posted a $958 million net profit, up 13.4% compared to a year ago, largely due to higher capital investments. NextEra is interested in connecting about 20 gigawatts worth of data centers to its system. The company stated that nearly half of these are in advanced discussion, with the potential to be online by 2028. According to the company, there will be announcements made in 2026 based on interest it sees on the ground in Florida.
The company's renewables arm, NextEra Energy Resources, has added 13.5 gigawatts (GW) of new projects for battery storage and generation to its backlog by 2025. This includes 3.6 GW that was added since the October call on the third quarter. The total backlog of the unit now amounts to approximately 30 GW.
Segment reported a net income of $545m in the fourth quarter compared to a loss of 442m a year ago. NextEra has reaffirmed that its forecasted adjusted earnings for 2026 will be between $3.92 to $4.02 per share. It also said it expects adjusted earnings to grow at an annual rate of 8% or higher through 2032.
According to data compiled and analyzed by LSEG, the company earned 54 cents a share for the quarter that ended on December 31. This compares with an average analyst estimate of 53 cents a share. Reporting by Pooja in Bengaluru, and Laila in New York. Editing by Tasimzahid, Alexandra Hudson.
(source: Reuters)
