NextEra beats profit estimates as data center power demand lifts utility growth
NEE•Quarterly profit beats estimates
NextEra Energy beat Wall Street estimates for second-quarter profit on Friday, driven by rising electricity demand from data centers that boosted its utility and renewable energy businesses.
The company earned $1.15 per share on an adjusted basis in the quarter, above analysts' average estimate of $1.11, according to data compiled by LSEG.
Nuclear restart and Dominion deal
The company also plans to restart the Duane Arnold nuclear plant in Iowa to supply power to Google data centers. On a post-earnings call, CEO John Ketchum said NextEra had acquired the remaining 30% stake in Duane Arnold from its cooperative partners, giving it full ownership.
However, it has not yet finalized the natural gas-fired power projects that are backed by a U.S.-Japan initiative, Ketchum added. The gas-based plants have a combined capacity of nearly 10 GW.
NextEra is also moving ahead on its agreement to buy Dominion Energy in a $66.8 billion deal that would create one of the world's largest electric utilities and broaden its regulated footprint across fast-growing U.S. markets.
The deal is under regulatory review after drawing opposition from U.S. Senator Angus King, who argued it would concentrate too much market power in one company.
Data center demand and project pipeline
U.S. utilities are investing billions of dollars to expand power generation and transmission as technology companies and data centers race to secure electricity.
