AEP Raises 2026 Guidance as AI-Driven Data Center Demand Surges
AEP sits 21% above its 52-week low of $105.7 on light trading volume (0.3× avg).
Summary
AEP lifted its full-year operating EPS guidance to $6.25–$6.55, up from $6.15–$6.45, driven by surging electricity demand from AI data centers. The company signed 6 GW of new load commitments in Q2, pushing its contracted load in Texas to 45 GW through 2030. These take-or-pay agreements are expected to save residential ratepayers up to $16 billion. AEP also secured an additional 3 GW of gas-fired turbine capacity, bringing its total to 13 GW for potential deployment through 2031, and is evaluating up to 10 GW more through 2035. The $78 billion capital plan does not yet reflect this scale of Texas load growth, suggesting further upside. This follows the $3.26 billion DOE loan secured earlier this month and the $2.6 billion equity offering in May, positioning AEP to fund massive grid expansion. Q2 operating EPS of $1.36 missed last year's $1.43, but the guidance raise and load backlog dominate the narrative.
At the time of this announcement, AEP was trading at $128.27 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $69.8B. The 52-week trading range was $105.70 to $140.58. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Reuters.