Xcel Energy(US:XEL) Yahoo Finance·2026-01-12 10:53Core Insights - The growth of data centers and the oil and gas sector is expected to drive significant demand expansion for electricity, with data centers representing about 60% of Xcel's anticipated retail sales growth through 2030 [4][6] - Xcel has raised its five-year capital spending plan to $60 billion, which includes investments in renewable energy, gas generation, energy storage, and wildfire mitigation [5] - The U.S. economy is experiencing mixed signals, with a cooling labor market but strong investment in AI and data centers [3] Group 1: Demand and Growth - Electric demand in the U.S. has grown about 0.5% annually over the last 10 to 15 years, primarily due to population growth [2] - The oil and gas sector, particularly in the Texas panhandle and southeastern New Mexico, is also contributing to electric demand through electrification and decarbonization efforts [7] - Data center developers have announced new construction plans totaling about $600 billion in capital spending, which will create competition for resources needed for infrastructure development [16] Group 2: Infrastructure and Supply Chain - Supply chain issues are affecting the procurement of electrical equipment, with lead times for transformers increasing from one year to nearly three years [8] - Construction timelines for combustion turbine gas plants have extended from 18 months to 4-5 years [9] - The need for proactive planning and collaboration with regulators and stakeholders is emphasized to address supply chain delays [10] Group 3: Energy Sources and Costs - Nuclear energy is highlighted as a preferred energy source for data centers, providing about 50% of the U.S.'s carbon-free electricity [14] - The U.S. nuclear fleet is aging, and there is a call for revitalization as a national initiative [15] - Engineering, procurement, and construction costs have seen a price increase of 30% to 40% over the last couple of years due to competition for labor and materials [18]