CenterPoint Energy ups capex plan by $500 million as US power demand grows

July 24 (Reuters) - U.S. electric and gas utility CenterPoint Energy CNP.N increased its 10-year capital spending plan by $500 million as it focuses on rising power demand, primarily in Texas, company executives said on Thursday.

As AI data centers and the electrification of industries like transportation drive up U.S. electricity consumption, utilities are increasing plans to spend on power infrastructure to meet rising demand.

This year, CenterPoint has increased its capital expenditure plan by $5.5 billion to $53 billion.

CenterPoint delivers electricity and natural gas to more than 7 million customers across Indiana, Louisiana, Minnesota, Mississippi, Ohio and Texas.

It is in the process of selling its Ohio gas business and focusing on its Texas segment, executives with the company said on an earnings call. If the sale is successful, Texas would make up about 70% of the company's portfolio.

Texas is one of the quickest-growing data center markets, with the business-friendly state also attracting other forms of energy-intensive industries like computer chip manufacturing.

In the Houston area, alone, CenterPoint expects a nearly 50% increase of peak electricity demand on the system by 2031.

Power demand from U.S. data centers is expected to nearly triple in the next three years and consume as much as 12% of the total electricity produced, according to a study by Lawrence Berkeley National Laboratory.

CenterPoint also reported its second-quarter profit, which was just shy of analysts' estimates, weighed down by higher expenses.

Its operations and maintenance costs increased 5.5% to $715 million during the quarter ended June 30.

Net income fell about 13% to $198 million.

It posted an adjusted profit per share of 29 cents during the quarter, compared with analysts' average estimate of 30 cents, according to data compiled by LSEG.