Southern Company Increases Five-Year Capital Plan to $81 Billion to Meet Data Center Power Demand
Southern Company has raised its five-year capital expenditure plan from $76 billion to $81 billion to address increasing electricity demand from data centers and industrial sites across the Southeast U.S. The utility has contracted 10 gigawatts of large-load demand and anticipates significant growth in commercial sales. Despite a slight miss in earnings per share expectations for Q4, the company expects adjusted profits to rise by 2026. Southern is also enhancing its natural gas capacity to meet future demands.
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Southern Company increased its five-year capital spending plan to $81 billion from $76 billion to accommodate rising electricity demand from data centers in the Southeast U.S. The utility has contracted 10 gigawatts of demand and identified a large-load pipeline of 75 gigawatts.
It plans to boost its power generation capacity, including potential upgrades of existing natural gas facilities and additional renewable projects. For the quarter ending December 31, the company reported an adjusted profit of 55 cents per share, below analysts' expectations. It forecasts adjusted profits for 2026 to be between $4.50 and $4.60 per share.
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