NextEra Just Raised Its Large-Load Forecast to 8 Gigawatts. Here's Why That Matters.
AI demand could drive years of regulated earnings growth.
Overview
Electric utilities don't typically raise long-term demand forecasts by one-third unless something meaningful has changed. Yet that's exactly what NextEra Energy (NYSE: NEE) did earlier this year when it increased its forecast for large-load demand at Florida Power & Light (FPL) from 6 gigawatts to 8 gigawatts by 2032.
Interestingly, the primary driver here isn't population growth or new housing developments. It's hyperscale data centers and other large industrial customers that need enormous amounts of reliable electricity.
Details
Artificial intelligence has created an unprecedented race among hyperscalers to secure power for massive data centers. And those facilities can consume hundreds of megawatts, with the largest campuses eventually requiring more than a gigawatt of capacity. Utilities capable of delivering power quickly and at competitive rates are becoming strategic partners in that build-out, and NextEra believes it's well positioned to benefit.
Source
Originally published at www.fool.com.