- NEWS Desk Global
US ELECTRIC UTILITIES BRACE FOR SURGE IN POWER DEMAND FROM DATA CENTERS
The U.S. electric utilities sector is anticipating a significant surge in demand driven by data centers that power technologies like generative AI. According to reports, nine out of the top 10 electric utilities in the United States have identified data centers as a primary source of customer growth. This recognition has led many utilities to revise their capital expenditure plans and demand forecasts upward. The heightened demand from data centers comes at a time when the electric utilities sector has been experiencing challenges. In 2023, the sector saw a decline in share prices by over 10%, marking the largest yearly drop since 2008. This decline was attributed to rising inflation, which prompted investors to seek higher yields elsewhere.
However, the outlook for electric utilities seems to be improving in 2024. Despite the challenges faced in the previous year, electric utility companies have seen their shares rise by about 4% so far this year. This positive trend is fueled by the anticipation of increased demand from data centers and other factors contributing to economic growth.