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American Electric Power tops quarterly revenue price quotes on data center load

American Electric Power beat estimates for thirdquarter revenue on Wednesday, as higher electrical power use at data centers increased need from industrial clients.

U.S. power demand is poised to increase to tape-record highs by the end of 2024, backed by growing demand for synthetic intelligence data centers, according to U.S. Energy Information Administration information.

Columbus, Ohio-based American Electric stated its commercial load - the quantity of power utilized by customers at a given point - increased more than 10% in the documented quarter compared to last year.

We anticipate commercial load to grow approximately 20%. annually over the next three years based on client agreements. signed up until now, CEO Bill Fehrman said in a statement.

The business, which has about 5.6 million clients in 11. states, likewise raised its five-year capital strategy to $54 billion,. from $43 billion devoted earlier.

Data centers could consume to 9% of the overall electrical power. produced in the United States by the end of the years,. depending upon the adoption speed of GenAI and other technologies,. an Electric Power Research Institute analysis stated in May.

AEP anticipated 2025 operating revenues in the per-share range. of $5.75 to $5.95, compared to a Wall Street quote of $5.98. per share, according to data put together by LSEG.

It reported operating earnings of $1.85 per share for the. three months ended Sept. 30, compared to analysts' average. estimate of $1.80 per share.

(source: Reuters)