FirstEnergy reports a 25 GW AI data center pipeline with 6.4 GW now under contract, the largest utility-side buildout queue, signaling exponential grid demand.

FirstEnergy Corp. reported second-quarter 2026 core earnings of $0.50 per share, in line with expectations, but the quarter's significance lay not in the earnings print itself but in the accelerating data center demand reshaping the company's investment thesis. Total forecasted data center load across FirstEnergy's footprint jumped 30% since the first quarter to approximately 25 gigawatts, while contracted demand hit 6.4 GW, up 2.1 GW in the quarter alone. Management expects to sign an additional 1.5 GW within weeks.

"Our contracted and pipelined demand now represents approximately 70% of our July system peak load of 34.8 gigawatts," Chairman and CEO Brian Tierney said. "That illustrates both the scale of the opportunity ahead and the confidence customers have in FirstEnergy as a long-term partner."

The urgency among hyperscalers to secure interconnection queue positions has compressed timelines. "There's a sense of urgency by everyone to get contracted as quickly as possible, to get into that process as quickly as possible," Tierney told analysts, referring to PJM's regional transmission planning—a process viewed as a bottleneck for bringing new data center load online and driving rapid conversion of pipeline to signed deals.

FirstEnergy maintained its 2026 core EPS guidance of $2.62–$2.82 and its $36 billion five-year capital plan, while signaling that new transmission and generation investments could be incremental. CFO Jon Taylor noted that the $2.9 billion deployed in the first half—up 19% year-over-year—keeps the company on track for its $6 billion full-year target. Trailing twelve-month earned ROE held at 9.5%, in line with management's targeted returns.

West Virginia is emerging as the epicenter of FirstEnergy's generation ambitions. The company's Mon Power unit already has 4.3 GW of contracted and pipelined data center demand in the state, and the 1.2 GW Moundsville Energy Center—a natural gas plant—is nearing regulatory approval. Hearings on the Certificate of Public Convenience and Necessity concluded earlier this month, with an order expected this fall. Tierney expressed confidence in a positive order, citing support from the governor and a commission that "understands that new generation needs to be brought online," while noting that opposition from coal interests "is not unexpected" but that "this plant isn't going to replace coal plants that we have in the state. It's going to be added to them."

Beyond Moundsville, FirstEnergy is evaluating an affiliated generation company structure ("genco") that would sell power at wholesale to Mon Power or Potomac Edison under a contract approved by the West Virginia Public Service Commission. Tierney said that path would require FERC approval for wholesale sales and PSC approval of the contract, but "that process would be considerably faster than the traditional CPCN process." The company has already started an RFP for major equipment and site selection for a second plant, designed to "bring new generation online faster, protect and create value for existing customers, support economic growth, and deliver appropriate market-based returns."

Taylor estimated that only about $400 million of the investment tied to the 6.4 GW of contracted data center demand is currently outside the $36 billion five-year plan, as the newly contracted 2.2 GW since Q1 lands mostly in 2030–2032. Management signaled that a significant portion of upside will be included when the five-year plan is refreshed later this year or early next year. "The types of conversations we're having with the customers in West Virginia are urgent, are focused on speed to power," Taylor said. "I have a sense that this is going to move fairly quickly." On financing, Taylor indicated that the current equity plan for the $36 billion program is unchanged, with incremental capital likely requiring 30–40% equity, though that share could be lower if customers agree to milestone payments during construction—a concept being actively negotiated.

FirstEnergy's transmission business is growing at a 16% compound annual rate through 2030, and the company is participating in the 2026 PJM open window for competitive transmission projects. Taylor noted the company has already won $5 billion in prior competitive windows and is "well-positioned" given its geography and expertise. He also highlighted that PJM's reliability backstop auction allocates less than 4% of capacity to FirstEnergy zones, a design that protects customers from excessive cost exposure. Regulatory momentum continued with rate case plans in New Jersey and Maryland, an Ohio rate plan on track, and broader strategic progress across the company's footprint.