AI Boom Prompts Utility AEP to Boost Spending by $16 Billion (1)

American Electric Power expects to increase its five-year capital spending plan from its current $54 billion to approximately $70 billion as the demand for power continues to boom.

The utility, which operates in 11 states including Ohio and Texas, has signed agreements with customers for 24 gigawatts of new load through 2029, with 18 gigawatts coming from data centers, according to an earnings presentation Wednesday. “Demand for power is growing at a pace I have not seen in my 45-year energy career,” Chief Executive Officer Bill Fehrman said on a call with investors.

Entergy Corp. also said Wednesday it had ...