Duke Energy defends need for major growth to keep pace with data center boom
Duke Energy is in a “once-in-a-generation build cycle” to meet rapidly accelerating customer demand across the Carolinas, which is being fueled by advanced manufacturing and new AI technologies, CEO Harry Sideris said during a Tuesday quarterly earnings call.
The comment comes amid growing public opposition to mega data centers and customers worry about higher energy bills from Duke Energy and other utilities.
Charlotte-based Duke Energy is asking state regulators to approve roughly $800 million in additional charges tied to fuel and power costs from the winter, a move that would raise monthly bills for customers across North Carolina through an 18% rate hike. The move has drawn opposition from Gov. Josh Stein amid ongoing backlash over rising utility costs.
Sideris stressed that Duke Energy’s focus remains on affordability for customers in the Carolinas, whose rates are currently below the national average and have risen at a pace lower than inflation.
“We have been collaborating with state and local officials, policymakers and regulators to attract these investments to our communities while protecting our existing customers,” Sideris said during Tuesday’s first-quarter earnings call.
New contract structures ensure customers pay their “fair share” of system costs, he said.
These contracts include minimum demand provisions, credit support, refundable capital advances and termination charges, Sideris said.
“These incremental volumes will benefit all customers over the life of the contract, as system costs are spread over a larger base,” he said. “When projects are built with communities and not around them, we are able to support growth in a way that both protects and benefits customers.”
Duke Energy touts $5 billion in customer benefits
Sideris did not address the proposed rate hike, but highlighted two accomplishments expected to deliver more than $5 billion in total benefits for customers:
Carolina utilities’ merger: Duke Energy has secured all necessary regulatory approvals for the proposed combination of its two Carolina utilities, a merger projected to result in an estimated $2.3 billion in customer savings through 2040 by enabling more efficient energy delivery.
Duke Energy Carolinas and Duke Energy Progress have operated as separate utilities since the 2012 merger of Duke Energy and Progress Energy. The next step will be intervener testimony at the end the month, Sideris said. The combined entity is set to take effect on Jan. 1.
Clean energy tax credits: The company reached a multi-year agreement to monetize up to $3.1 billion of clean energy tax credits generated through 2028. The proceeds from these credits — earned through nuclear, solar and battery investments — will flow back to customers to support keeping rates low, potentially further reducing rates during this investment period, Chief Financial Officer Brian Savoy said.
Duke Energy and the Carolina data center boom
Duke Energy is responding to unprecedented regional growth driven by advanced manufacturing and AI technologies. In February, the utility revealed a $103 billion capital plan fueled by data center demand.
The company has signed agreements for approximately 7.6 gigawatts (GW) of new energy sales with data center customers, with construction already underway on the first 5 GW of these facilities, Duke Energy officials said Tuesday. For context, 1,000 MW equals 1 gigawatt, or GW, is equivalent to powering about 750,000 homes.
Interest in its is accelerating, partly because Duke Energy offers a “one-stop shop” for large hyperscaler data centers, Sideris said. Significantly in North Carolina, the Charlotte area is becoming a hub for data centers. Other areas with high interest are Florida and southern Indiana.
“We all have the same goal in mind to make sure that our customers are protected, and our states can continue to grow, and we can continue to have reliability,” Sideris said.
Asked about confidence in the timing of data center-related deals and facing local moratoriums, Sideris said projects with contracts signed by the customer require having zoning and permits secured.
“That’s why a lot of them have been able to start construction as soon after we sign those,” he said. “We anticipate the same thing with all the new ones that are coming into us.
Duke Energy and job creation
Duke Energy is advancing several key power generation projects to meet future demand, company officials said.
The Nuclear Regulatory Commission last month approved a subsequent license renewal for the Robinson nuclear plant in Hartsville, South Carolina, southeast of Charlotte. Duke Energy intends to seek similar license extensions for all of its remaining reactors.
In South Carolina, a new 1.4 GW combined cycle plant in Anderson County was approved in March, the first new base-load gas generation approved in the state in a decade, with construction expected to start in 2027. The company’s planned gas generation build, which includes projects in Person County and Marshall in Madison County, is expected to create thousands of local construction jobs.
Duke Energy financial outlook
Savoy highlighted a company milestone: Duke Energy’s 100th consecutive year of paying a quarterly cash dividend.
Duke Energy’s revenue climbed to $9.1 billion in the first quarter ending March 21, up about 10% from $8.3 billion last year. The company’s first-quarter profit was $1.5 billion, or $1.93 per share.
Duke Energy serves 8.7 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky, and collectively own 55,700 megawatts of energy capacity. Its natural gas utilities serve 1.6 million customers in North Carolina, South Carolina, Ohio and Kentucky.
Looking ahead, Sideris reaffirmed the company’s long-term earnings per share growth rate of 5% to 7% through 2030.
This story was originally published May 5, 2026 at 1:47 PM with the headline "Duke Energy defends need for major growth to keep pace with data center boom."
