FirstEnergy positioned to capture revenue upside from surging AI data center power demand in its Midwest utility service region.

FirstEnergy Corp. is positioned to benefit from rising electricity demand driven by data center development across its service territories. The company's West Virginia region has captured significant interest from hyperscale operators, with nearly 1.8 gigawatts of highly credible data center projects already in the pipeline—a 50% increase from earlier expectations. FirstEnergy is actively advancing negotiations for more than 6 GW of potential additional load, with nearly 4 GW expected to be contracted soon, providing strong visibility into future demand growth.

The acceleration is notable across the company's planning horizon. Its 2035 pipeline demand has reached 14.9 GW, representing a 15% increase since February 2026. Should these projects move forward, they could become a major long-term growth driver for FirstEnergy through higher electricity sales and infrastructure investment needs.

To accommodate this expanding demand, FirstEnergy is executing its Energize365 multi-year grid investment plan, which modernizes infrastructure, enhances customer experience and maintains competitive electricity rates. The company plans to invest $6 billion in 2026 and $36 billion during the 2026-2030 period, with a focus on grid modernization and enabling new customer interconnections for data center facilities.

This trend extends across the utility sector. American Electric Power expects 63 GW of incremental contracted load by 2030, up from 56 GW, with hyperscale data centers representing nearly 90% of total demand. PPL Corporation is similarly positioned, with Pennsylvania operations identifying 28.3 GW of potential data center demand and approximately 12.9 GW of projected growth in Kentucky through 2032, including more than 11.9 GW from data centers alone.

FirstEnergy's earnings outlook reflects this momentum. Zacks Consensus Estimates project year-over-year EPS growth of 7.45% for 2026 and 7.57% for 2027. The stock currently carries a Zacks Rank #2 (Buy), though it trades at a premium to its industry peers, with a forward 12-month price-to-earnings ratio of 17.1X compared to the industry average of 15.87X. Over the past month, the company's shares declined 6.3% against the industry's 4.8% growth.