Evergy's pipeline for power users such as data centers has jumped to 11,2 GW
Evergy Inc.'s pipeline of very large electricity clients, such as data centers, has increased to 11,2 gigawatts, which is more than its current maximum total demand.
Evergy, a Midwestern company that covers Missouri and Kansas in the United States, has announced an increase of 8% on its capital spending plan for 2025-2029, to $17.5 billion.
Data centers are in high demand
The demand for cloud computing and artificial intelligence has pushed up U.S. electricity consumption after a two-decade hiatus. This year, the country is expected to hit record levels.
Evergy secured 800 megawatts of orders from customers such as Google, Meta, and Panasonic, for data centers, advanced manufacturing and advanced manufacturing.
Evergy is currently finalizing agreements for another 1.6 GW pipeline. Evergy is currently in advanced talks with 2.9 GW potential customers and another 6 GW have inquired.
Evergy CEO David Campbell said, "They want to know that we can serve them." "They want to get moving quickly."
Evergy has begun building its first gas-fired power plant in over a decade, and its first large solar farm in order to increase the power generation capacity of its system.
On Thursday, the company's fourth-quarter profits missed estimates due to higher operating and interest costs.
Evergy's borrowing costs are likely to increase as interest rates continue to rise. Utility companies like Evergy need additional capital for maintenance of the grid and other expenses.
Total operating expenses for the company in the third quarter increased by 2.8% compared to a year earlier, to $1.04billion. Interest costs also rose from $132.2m to $142.4m.
Retail sales in the fourth quarter were up 5.4% compared to a year ago, reaching $1.04 billion. This was largely due to an increase in residential consumption. Overall revenue increased 6%, to $1.26 Billion.
Evergy supplies power to over 1.7 million Kansas and Missouri customers through its operating subsidiaries Evergy Kansas Central and Evergy Metro.
(source: Reuters)
