RWE shares soar near 15-year high after data centre sale boosts AI hopes

Core Viewpoint - RWE reported higher-than-expected profits for the first nine months of the year, driven by a significant book gain related to data centers, which has raised expectations for further deals in the context of increasing global AI investments [1][4]. Financial Performance - RWE's nine-month adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) fell by 13% to 3.48 billion euros, surpassing the average forecast of 3.14 billion euros [3]. Market Reaction - RWE's shares rose by 9.1%, reaching their highest level since February 2011, which added nearly 3 billion euros in market value [2]. Strategic Initiatives - RWE is exploring over 10 data center projects across key European markets, including Germany, Britain, and the Netherlands, indicating a strategic focus on leveraging its existing power plant locations for data center development [4][5]. - The company has previously engaged in similar transactions, including a sale to Microsoft in Germany [4]. Industry Trends - The demand for data centers is expected to surge, with investments from major hyperscalers projected to double from 2024 to 2027, reaching approximately $500 billion annually [6].