Southern Company has become a notable AI infrastructure story in the utility sector, with its stock up nearly 12% year to date. The company reported a 42% year-over-year increase in data center sales for the first quarter and signed a 25-year power deal with OpenAI for a planned $30 billion data center in Georgia requiring about 3.2 gigawatts starting in 2028. Southern now has more than 11 gigawatts of contracted large-load customers, with another 6 gigawatts in finalizing stages and 6 gigawatts in late-stage development, totaling 23 gigawatts contracted or close to it, and a prospective pipeline exceeding 75 gigawatts. Its five-year capital plan has grown to $81 billion, up 28% since January 2025, including 10 gigawatts of new generation and over 500 miles of transmission lines. Management guides for roughly 10% electric sales growth from 2026 through 2030 and 7% to 9% adjusted EPS growth through 2028 and beyond, though risks include regulatory approval, high net debt above $75 billion, and the conversion of the large-load pipeline into actual demand.
Southern Company42% YoY increase in data center sales, 25-year power deal with OpenAI, and 23 GW contracted or near-contracted large-load customers.
Signed a 25-year power deal with Southern Company for a planned $30 billion data center, indicating AI infrastructure expansion.