DTE Energy has secured 2.4 GW in power agreements with hyperscale data center operators, including 1.4 GW for Oracle and 1 GW for Google. Analysts at 24/7 Wall St. set a price target of $148.32 for the company's stock, suggesting a 12-13% upside from current levels of $130-132.
The company identifies a total pipeline of 8.4 GW in potential hyperscale projects. About 2 GW of this volume is in advanced discussions, with management aiming to finalize a contract by the end of 2026. CEO Joi Harris noted that adding 3 GW of capacity could raise the earnings-per-share growth rate above 8% through 2030.
DTE Energy announced a capital expenditure plan of $36.5 billion for 2026-2030, with $30 billion allocated to electric operations. These agreements may postpone the next electric rate case until 2028. The company remains a leader among regulated utilities in terms of executed hyperscale agreements.
Execution risks include potential delays in permitting, construction, and grid upgrades. While other utilities like Dominion Energy and Duke Energy are also pursuing similar deals, DTE's contract with Oracle is currently one of the largest publicly disclosed agreements between a utility and a hyperscaler.
