Summary of Key Points from the Conference Call Industry Overview - **Industry**: US Power Demand and Utilities - **Growth Rate**: Overall US power demand CAGR is increased to **2.6%** through **2030E**, up from **2.5%** previously, driven by data center demand and electric vehicles [1][3][17][18]. Core Insights - **Data Center Demand**: Data centers are expected to contribute approximately **120 basis points (bps)** to the overall **2.6% CAGR**, with **70 bps** coming specifically from AI data centers [3][20]. - **Capacity Requirements**: The capacity needed to meet data center demand is raised to **~82 GW**, up from **72 GW**, with a split of **60% natural gas** and **40% renewables** [1][6][30]. - **Power Demand Trends**: Weather-normal power demand has increased by **2.5% YTD** through July 2025, aligning with the long-term CAGR of **2.6%** [7][39]. Financial Metrics - **Valuation Multiples**: Regulated utilities are trading at an average of **~18x P/E** on 2026 estimates, close to the historical average of **17.6x**, despite higher EPS growth expectations [2][8][45]. - **EPS Growth**: The average expected **2-year EPS growth** is **7.4%**, which is higher than the last **10 years' average of 6%** [2][45]. Investment Opportunities - **Key Beneficiaries**: Companies expected to benefit from growing power demand include: - **AEP**: Anticipates **24 GW** of load growth contracted through 2029, driven by data center demand [49]. - **SO**: Expects **8% annual load growth** through 2029, with significant potential from large manufacturers and data centers [50]. - **DUK**: Forecasts demand growth accelerating to **3-4%** in 2027-2029 [51]. - **XEL**: Projects **5% aggregate load growth**, with upside potential from data center demand [51]. - **NEE**: Benefits from load growth through its unregulated renewable business, with plans to add **up to 46.5 GW** of renewable generation [51]. Additional Insights - **Data Center Contribution**: By **2030**, data centers are expected to account for **~11%** of total power demand, up from **~4%** in **2023** [18][28]. - **Electric Vehicle Impact**: Revised forecasts indicate that EVs will make up **6%** of overall cars on the road by **2030**, down from **7%** in previous estimates [18]. - **Capex Requirements**: The **82 GW** of new generation capacity translates to approximately **$103 billion** of capital expenditure needed through **2030E** [29][33]. Conclusion - The US power demand landscape is evolving with significant contributions from data centers and electric vehicles, presenting various investment opportunities in regulated utilities. The current valuation multiples do not fully reflect the expected growth, indicating potential upside for investors in this sector.