DTE Energy adds $6.5 billion to five-year spending plan on data center power demand

Oct 30 - DTE Energy DTE.N on Thursday raised its five-year capital investment plan by $6.5 billion to $36.5 billion, driven by growing electricity demand from data centers and efforts to modernize its utility assets.

DTE also reported third-quarter profit that beat Wall Street expectations, helped by higher income from its electric segment.

The utility said its revised investment plan marks a 22% increase from its previous 2025–2029 plan, and reflects the company's push to expand clean energy generation and strengthen grid reliability.

With power demand rapidly increasing across the country, utilities are adding billions of dollars to their capital investment plans to fund upgrades to the electrical grid and related infrastructure.

A surge in AI and cryptocurrency data centers, combined with the accelerating electrification of homes and businesses, is expected to push U.S. power demand to record levels in 2025 and 2026, according to the U.S. Energy Information Administration.

DTE's new plan includes $30 billion for its electric business, $4.5 billion for its gas segment and about $2 billion for its DTE Vantage unit.

It said the spending could rise as negotiations advance on more data center projects.

The company reaffirmed its 2025 operating earnings forecast of $7.09 to $7.23 per share and provided 2026 outlook of $7.59 to $7.73 per share.

The Detroit, Michigan-based company reported an operating profit of $2.25 per share for the three months ended September 30, compared with analyst's estimate of $2.11 per share, according to data compiled by LSEG.