Duke Energy Bets Billions on AI’s Power Demand Surge

The explosive growth of artificial intelligence is creating an unprecedented need for electricity, and Duke Energy is positioning itself as a primary beneficiary. The utility giant has unveiled a monumental $103 billion capital investment plan spanning 2026 through 2030, marking the largest regulated capital program in U.S. utility history. This strategic pivot is a direct response to the soaring power requirements of new data centers.

The company’s ambitious expansion is backed by solid recent results. For the full year 2025, Duke Energy reported adjusted earnings per share (EPS) of $6.31, a 7% increase that landed at the high end of its own guidance. The fourth quarter provided particular momentum, with revenue climbing to $7.94 billion, comfortably surpassing analyst estimates.

Management has issued confident guidance for 2026, targeting an EPS range of $6.55 to $6.80. The long-term outlook calls for annual earnings growth of 5% to 7%, with expectations to consistently achieve results in the upper half of that range starting in 2028.

A Data Center Pipeline Fuels the Plan

The core driver of this massive investment is the accelerating demand from technology firms. Data centers are projected to account for a staggering 75% of Duke Energy’s load growth through the end of the decade. In the fourth quarter alone, the utility secured new contracts for data center capacity totaling 1.5 gigawatts (GW), with clients including industry heavyweights like Microsoft and Compass Datacenters.

Should investors sell immediately? Or is it worth buying Duke Energy?

This brings the company’s total backlog for this sector to 4.5 GW. Furthermore, the potential pipeline for future projects is even larger, standing at approximately 9 GW. To meet this surge in demand, Duke Energy plans to add 14 GW of new generation capacity by 2031, with a focus on natural gas and advanced battery storage systems.

Wall Street Applauds the Strategic Vision

The market’s response to the announced strategy has been positive. Analysts have moved to adjust their price targets upward, endorsing the company’s clear growth trajectory tied to the AI boom.

• Goldman Sachs reaffirmed its Buy rating and modestly raised its price target to $142.
• BMO Capital Markets also sees further upside, increasing its target from $132 to $136.

Dividend Reminder for Shareholders

For income-focused investors, a key date is imminent. The stock will trade ex-dividend on Friday, February 13. Shareholders must own the equity by the end of trading on Thursday, February 12, to be eligible for the upcoming quarterly payout of $1.065 per share. The dividend payment is scheduled for March 16.

The central question now is whether this record-breaking capital commitment, squarely aimed at powering the digital future, can sustainably accelerate the utility's growth rate for years to come.