WEC Energy posts higher profit as data center demand grows (updated)

WEC Energy

29/07/2026 20:39

Adds details about data center demand and Oracle data center project facing credit hurdle in Wisconsin
July 29 (Reuters) - WEC Energy Group WEC.N reported a nearly 22% rise in second-quarter profit on Wednesday, as higher electricity sales to commercial and industrial customers like data centers boosted revenue and offset rising costs.
     
U.S. power consumption, which hit a second straight annual record high in 2025, is expected to rise further in 2026 and 2027 as data-center expansion and electrification drive demand. Commercial-sector growth is expected to outpace residential demand this year.
By the end of 2030, about 15% of the company's asset base would be dedicated to data centers and other very large energy users, WEC Energy CEO Scott Lauber said.
One of the largest data center customers WEC has contracted to supply electricity to — an Oracle data center campus in Port Washington, Wisconsin — is moving ahead with construction despite clashing with the state over a requirement that the technology company provide more collateral for the project, Lauber said.
In the latest quarter, the utility said energy usage by large commercial and industrial customers, excluding an iron ore mine in Michigan's Upper Peninsula and very large customers, increased 0.9% compared to last year.
Residential electricity use decreased 1.1% in the quarter.
WEC's second-quarter operating revenue rose 2.6% to $2.06 billion, compared with analysts' average estimate of $2.05 billion, according to data compiled by LSEG.
Total operating expense also rose about 1.5% to $1.63 billion, while interest expense was up 3.7% at $228 million.
The Milwaukee-based company's net income grew to $299.2 million, or 91 cents per share, from $245.4 million, or 76 cents per share, a year earlier.
WEC provides electricity and gas to nearly 4.8 million customers in Wisconsin, Illinois, Michigan and Minnesota.
The company reaffirmed its 2026 earnings forecast of $5.51 to $5.61 per share. The midpoint of the range, $5.56, was below analysts' estimate of $5.60.

 (Reporting by Sumit Saha in Bengaluru and Laila Kearney in New York. Additional reporting by Varun Sahay. Editing by Joyjeet Das and Nia Williams)
 ((Sumit.Saha@thomsonreuters.com;))