AI Data Centers' Power Demand Doubles to 300MW Annually, Driving Utility Growth; Southern Company Secures 25-Year, 17GW OpenAI Contract
The average individual data center load doubled from 150 to 300 megawatts (MW) between 2023 and 2024, significantly boosting regulated capital expenditures for utilities. Southern Company (NYSE:SO) has signed large-load agreements totaling over 17 gigawatts (GW) by the mid-2030s, including a 25-year electric-service contract with OpenAI for a site near Savannah, Georgia. Duke Energy (NYSE:DUK) has already secured 7.8 GW of data center electric service agreements and targets converting an additional 15.4 GW pipeline by the first half of 2027. Other utilities like WEC Energy Group (NYSE:WEC), Xcel Energy (NASDAQ:XEL), and Consolidated Edison (NYSE:ED) are also benefiting from this surge in demand, with Xcel Energy having signed a landmark Google data center agreement in Minnesota.
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