Duke Energy sets record $103 billion capital plan, fueled by data center demand
Duke Energy revealed a record-breaking capital plan and highlighted significant progress in core areas of operation, including the Carolinas, to meet unprecedented demand driven by the AI boom.
Duke Energy’s revenue climbed to $4.9 billion, 7% growth over the prior year, the Charlotte-based utility company reported during Tuesday’s fourth-quarter and full-year 2025 earnings call. Duke Energy announced it is committing $103 billion to its five-year capital plan through 2030, up 13.7% or $16 billion, over the prior plan.
It “is the largest fully-regulated capital plan in the industry focused on critical energy infrastructure investments that strengthen the system and serve increasing load,” Duke Energy CEO Harry Sideris said during an earnings call. “As the investment needs of our utilities accelerate, I want to emphasize that the cost of energy has been and will remain a key focus for Duke Energy.”
In a news release timed to the earnings report, Sideris said the company is starting the year “with incredible momentum. The fundamentals of our business have never been stronger, and we operate in some of the most attractive jurisdictions in the nation.”
Here are four key takeaways from Tuesday’s earnings call and questions from analysts:
Duke Energy investments for growth and reliability
Duke Energy’s latest capital investment plan is projected to drive 9.6% earnings-based growth, Sideris said. It will fund energy infrastructure that will improve grid reliability.
The company is adding approximately 14 gigawatts (GW) of incremental generation over the next five years. That includes breaking ground on 5 GW of new natural gas generation in the Carolinas and Indiana, and a significant ramp-up in battery deployment to 4.5 GW of additions through 2031.
1 gigawatt is equivalent to powering about 750,000 homes.
Duke Energy also is evaluating emerging technologies to support its growing communities. In December, the company submitted an early site permit for a potential small modular reactor at its Belews Creek Steam Station in Stokes County.
Duke Energy is looking to mitigate financial risk for customers and investors before making a decision to move forward with any new nuclear development, Sideris said.
Data centers accelerate Duke Energy load growth
The company is experiencing accelerated load growth — heightened electricity demand on the power grid — driven significantly by the development of hyperscale data centers in its service territories. Hyperscale data centers are large-scale facilities that can rapidly handle massive computing power and data storage, typically consuming more than 50 MW annually.
Since November, Duke Energy has signed energy services agreements for an additional 1.5 gigawatts of new data centers, including customers like Microsoft and Compass, said Brian Savoy, executive vice president and chief financial officer for Duke Energy.
This brings the total secured for data centers to for 4.5 GW. They are all under construction and have zoning approvals, he said.
The late-stage development pipeline is about double that amount, at 9 GW, with new announcements expected this year, Savoy said.
Regionally and across Duke Energy’s system, data centers are becoming an increasingly larger component of the long-term load growth. Data centers are expected to comprise about 75% of the economic development-driven load growth by the end of 2030, Savoy said.
Duke Energy officials said they are committed to protecting existing customers from new load-related costs. The contracts include minimum billing demand, termination charges and refundable capital advances to ensure new large-load customers pay their fair share.
In its contracts, Duke Energy has secured the ability to manage peak demand, helping to speed up interconnection and maintain reliability by having data centers rely on their backup generation for about 50 hours a year.
“We’ll continue to utilize every tool available to keep rates as low as possible,“ Sideris said, “including managing costs, leveraging tax credits and minimizing financing costs through regulatory mechanisms.”
A wave of new data center developments is sweeping across the Carolinas, with the Charlotte region being a central hub. But the surge has sparked opposition by many residents over noise, water usage and power needs as the data centers operate with limited public disclosure.
Carolina customer rate cases
Duke Energy has secured settlements in its South Carolina rate cases, which were approved in December by the South Carolina Public Service Commission
The company is in the process of its request for a new, 15%, multi-year rate plan in North Carolina that would take effect in Jan. 1, 2027. Higher rates would cover the investment costs to modernize the grid and add capacity.
Gov. Josh Stein and Attorney General Jeff Jackson have opposed the 15% rate hike. It’s scheduled to be decided in June.
Duke Energy also is in the middle of combining its Carolinas utilities, a move projected to save customers more than $1 billion through 2038.
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Duke Energy storm response in the Carolinas
In a separate discussion on recent winter storms, company officials addressed the impact of those storms in the Carolinas, noting they are still compiling the costs.
Despite 200,000 customer outages in the Carolinas, over 95% of service was restored within 24 hours.
Duke Energy has mechanisms in the Carolinas for cost recovery and Sideris said he does not anticipate any impact to this year’s financial guidance, as storm costs are budgeted for annually.
