Home / Business and Economy / Southern Co Eyes $81B Spend Amid AI Data Center Boom
Southern Co Eyes $81B Spend Amid AI Data Center Boom
19 Feb
Summary
- Southern Co forecasts lower annual profit below analyst estimates.
- Company raises five-year spending plan to $81 billion by 2030.
- 10 gigawatts of power contracted for large customers like Google.
Southern Co has projected its annual profit will not meet analyst forecasts for 2026, with expected earnings between $4.50 and $4.60 per share. This forecast comes as the utility plans a substantial increase in its capital expenditure, raising its five-year spending budget to $81 billion from 2026 through 2030, up from the previous $76 billion.
The utility is responding to escalating power demands from large-scale customers, including major tech companies like Google, Meta, and Microsoft, which have contracted for 10 gigawatts of power. This significant demand is attributed to the growth of data centers supporting AI and cryptocurrency operations, alongside a broader trend towards electrification.
During the fourth quarter of 2025, Southern Co reported adjusted earnings of 55 cents per share, missing analyst expectations of 57 cents. Operating expenses saw a notable increase of 14.7%, while revenue grew by 10% in the same period.
