CenterPoint Energy Unveils Ambitious $65 Billion Capital Plan Amid Soaring Power Demand

(Reuters) – In a strategic move to bolster its infrastructure and meet escalating energy needs, CenterPoint Energy announced on Monday that it plans to invest a staggering $65 billion in capital expenditures from 2026 through 2035. This initiative comes as U.S. utilities strive to harness the surging demand for electricity.

The rapid expansion of artificial intelligence applications and cryptocurrency operations, alongside the electrification of key sectors such as transportation, are projected to significantly elevate U.S. power consumption rates.

In conjunction with this announcement, CenterPoint has adjusted its annual earnings per share (EPS) forecast upward, now predicting an adjusted EPS range of $1.75 to $1.77, an increase from the previous guidance of $1.74 to $1.76. Notably, the midpoint of the new range represents a 9% growth compared to last year’s earnings.

Analysts, as per data compiled by LSEG, had anticipated an EPS of $1.76. Looking ahead, CenterPoint is targeting a 2026 adjusted EPS of at least the midpoint of the range forecasted at $1.89 to $1.91 per share.

According to a comprehensive study conducted by the Lawrence Berkeley National Laboratory, power consumption from U.S. data centers is expected to nearly triple within the next three years, potentially accounting for up to 12% of the nation’s total electricity production.

CenterPoint reaffirmed its forecast that electric peak load demand is expected to rise by approximately 50%, reaching nearly 31 gigawatts (GWs) by 2031. Furthermore, the utility anticipates that peak power demand will double by the midpoint of the next decade.

The company stated, “Continued economic development is anticipated to drive significant growth in electric demand over the next decade, especially in Texas.” This sentiment underscores the expected boom in energy needs driven by economic activities.

Earlier in May, CenterPoint expressed its intention to allocate $4 billion towards new projects to support growth in Texas, an area recognized for its rapid expansion in the data center sector and its appeal to various energy-intensive industries, including computer chip manufacturing.

Delivering natural gas and electricity to over 7 million customers across states like Indiana, Louisiana, Minnesota, Mississippi, Ohio, and Texas, CenterPoint Energy continues to position itself as a pivotal player in meeting the evolving energy landscape in the U.S.

(Reporting by Katha Kalia in Bengaluru; Editing by Devika Syamnath)