(Reuters) – U.S. utility American Electric Power posted a rise in fourth-quarter profit on Thursday, as data centers boosted demand for power from commercial customers.
As Big Tech pours in billions of dollars into artificial intelligence technologies and the infrastructure needed to develop them, utilities have witnessed a huge surge in demand for power.
“In 2024, we experienced significant load growth in our commercial class, largely due to economic development in Indiana, Ohio and Texas,” said CEO Bill Fehrman.
The utility expects total retail load growth of up to 9% annually over the next three years and said it could serve more than 20 gigawatts of new load growth by the end of the decade.
AEP said it was also evaluating $10 billion of potential incremental investment to its five-year capital expenditure plan, which currently stands at $54 billion.
The U.S. Energy Information Administration expects power consumption to reach record highs this year and the next, driven by growing demand from data centers dedicated to AI and cryptocurrency, and with homes and businesses using more electricity for heat and transportation.
AEP serves about 5.6 million customers in 11 states and possesses the largest electric transmission system in the United States.
The Columbus, Ohio-based company earned $664.1 million, or $1.25 per share, in the three months ended December 31, compared with $336.2 million, or 64 cents per share, last year.
(Reporting by Vallari Srivastava in Bengaluru; Editing by Maju Samuel)
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