October 30, 2025
DETROIT, Oct 30 (Reuters) - DTE Energy announced on Thursday a significant 22% increase to its five-year capital investment plan, adding $6.5 billion for a new total of $36.5 billion, as the U.S. Midwest utility responds to surging electricity demand from data centers and ongoing grid modernization efforts.
The revised strategy comes as power demand across the United States hit record levels in 2025, a trend fueled by Big Tech's rapid expansion of data centers. Some of these facilities require an amount of power equivalent to a midsize city at a single location.
In a clear sign of this growth, DTE executives revealed on an investor call that the company has secured its first major data center agreement for 1.4 gigawatts of energy capacity. While the customer was not named, the company identified it as a "hyperscaler," a term that typically refers to large technology firms. The project is expected to ramp up over the next two to three years.
The momentum is set to continue, with DTE stating it is currently in discussions with hyperscalers for an additional 6 to 7 gigawatts of data center capacity.
The company's strong financial position was also highlighted, with third-quarter operating profit of $2.25 per share surpassing the Wall Street estimate of $2.11, according to LSEG data. This performance was aided by higher income from its electric segment.
DTE stated that the enlarged investment plan will support its push to expand clean energy generation and strengthen grid reliability. The $36.5 billion allocation includes $30 billion for its electric business, $4.5 billion for its gas segment, and approximately $2 billion for its DTE Vantage unit.
The utility cautioned that spending could rise further as negotiations on more data center projects advance.
Looking ahead, DTE reaffirmed its 2025 operating earnings forecast of $7.09 to $7.23 per share and provided an initial 2026 outlook of $7.59 to $7.73 per share.
Source: reuters
