American Electric Power Hikes $78B Plan, Shares Jump 3.4% Driven by AI Demand
FE•FE•FE•FE•American Electric Power shares rose 3.4% this week while the S&P 500 fell 2.5%, following AEP’s decision to boost its five-year capital plan to $78 billion. Management has secured contracts for 63 gigawatts of incremental power demand by 2030 but warns of grid interconnection delays due to PJM approval processes.
American Electric Power shares advanced 3.4% this week while the S&P 500 declined 2.5%, driven by management’s decision to raise its five-year capital expenditure plan to $78 billion to meet surging data-center power needs.
AEP’s five-year return correlation with the S&P 500 stands at just 0.26, capturing about 22% of market gains and absorbing only 16% of losses on trading days, highlighting its diversification benefits.
The utility has secured an incremental 63 gigawatts of contracted power demand by 2030, but executives caution that project timelines hinge on timely grid interconnection approvals from PJM, which have been slower than expected.
