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FE's Growth Is Driven by Investments and Rise in Data Center Demand
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Key Takeaways
FirstEnergy benefits from regulated operations and rising data-center demand in its service region.
FE plans $6B in 2026 investments and $36B through 2030, 30% above its prior plan.
FirstEnergy targets 100% carbon neutrality by 2050 while expanding gas and solar generation
FirstEnergy Corporation (FE - Free Report) benefits from its regulated structure and the development of data centers in its service region, resulting in rising load growth. Its strategic capital investment in infrastructure development enhances grid reliability, supports renewable expansion and long-term earnings growth.
FE’s Tailwinds
FirstEnergy benefits from a regulated structure and growing electricity demand from data centers. These provide a clear path for revenue growth and enhance earnings visibility. In West Virginia, the company has proposed a 1.2-gigawatt natural gas facility to support rising data-center demand, which has surged 50% since February 2026 to nearly 1.8 gigawatts. FE’s long-term demand pipeline has expanded to 14.9 GW, up 15% from February 2026 and more than double the February 2025 level.
The company’s strategic investment plan supports renewable expansion and strengthens its extensive transmission and distribution infrastructure. Its Energize365 platform focuses on customer affordability and keeps customer rates below those of in-state peers while enhancing service quality, operational efficiency and supporting long-term growth. FirstEnergy plans to invest $6 billion in 2026 and $36 billion in 2026-2030, 30% higher than its prior plan.
FE focuses on becoming a cleaner energy provider and aims to expand its renewable asset portfolio to support sustainable growth and meet evolving customer demand. It aims to add 1,200 megawatts (MW) of natural gas combined cycle generation by 2031 and 70 MW of utility-scale solar generation in 2028. The company targets to achieve 100% carbon neutrality by 2050.
FE’s Headwinds
FirstEnergy’s base rate request approvals remain uncertain, creating potential risks for the company’s performance. Any denial or delay in rate request approvals could adversely affect the cash flow generation, financial condition and overall earnings stability.
Although the company is working to reduce carbon emissions, it still operates coal-fired generating plants that are subject to stringent environmental regulations. This may lead to elevated compliance costs, greater capital spending and potential margin pressures.
In the past month, FirstEnergy shares have rallied 2.4% against the industry’s 0.1% fall.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks in the same sector include American States Water (AWR - Free Report) , Companhia Paranaense de Energia - Copel Unsponsored ADR (ELPC - Free Report) and NextEra Energy (NEE - Free Report) . All the stocks currently carry a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for 2026 earnings for American States Water, Companhia Paranaense de Energia - Copel Unsponsored ADR and NextEra Energy is pegged at $3.71, 74 cents and $4.01 per share, suggesting year-over-year growth of 10.09%,45.10% and 8.09%, respectively.
AWR, ELPC and NEE are projected to deliver long-term (three to five years) earnings growth of 6.93%,16.04% and 8.51%, respectively.
View the Zacks #1 Rank List
Image: Bigstock
FE's Growth Is Driven by Investments and Rise in Data Center Demand
Key Takeaways
FirstEnergy Corporation (FE - Free Report) benefits from its regulated structure and the development of data centers in its service region, resulting in rising load growth. Its strategic capital investment in infrastructure development enhances grid reliability, supports renewable expansion and long-term earnings growth.
FE’s Tailwinds
FirstEnergy benefits from a regulated structure and growing electricity demand from data centers. These provide a clear path for revenue growth and enhance earnings visibility. In West Virginia, the company has proposed a 1.2-gigawatt natural gas facility to support rising data-center demand, which has surged 50% since February 2026 to nearly 1.8 gigawatts. FE’s long-term demand pipeline has expanded to 14.9 GW, up 15% from February 2026 and more than double the February 2025 level.
The company’s strategic investment plan supports renewable expansion and strengthens its extensive transmission and distribution infrastructure. Its Energize365 platform focuses on customer affordability and keeps customer rates below those of in-state peers while enhancing service quality, operational efficiency and supporting long-term growth. FirstEnergy plans to invest $6 billion in 2026 and $36 billion in 2026-2030, 30% higher than its prior plan.
FE focuses on becoming a cleaner energy provider and aims to expand its renewable asset portfolio to support sustainable growth and meet evolving customer demand. It aims to add 1,200 megawatts (MW) of natural gas combined cycle generation by 2031 and 70 MW of utility-scale solar generation in 2028. The company targets to achieve 100% carbon neutrality by 2050.
FE’s Headwinds
FirstEnergy’s base rate request approvals remain uncertain, creating potential risks for the company’s performance. Any denial or delay in rate request approvals could adversely affect the cash flow generation, financial condition and overall earnings stability.
Although the company is working to reduce carbon emissions, it still operates coal-fired generating plants that are subject to stringent environmental regulations. This may lead to elevated compliance costs, greater capital spending and potential margin pressures.
FE’s Zacks Rank
FirstEnergy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price Performance of FE
In the past month, FirstEnergy shares have rallied 2.4% against the industry’s 0.1% fall.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks in the same sector include American States Water (AWR - Free Report) , Companhia Paranaense de Energia - Copel Unsponsored ADR (ELPC - Free Report) and NextEra Energy (NEE - Free Report) . All the stocks currently carry a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for 2026 earnings for American States Water, Companhia Paranaense de Energia - Copel Unsponsored ADR and NextEra Energy is pegged at $3.71, 74 cents and $4.01 per share, suggesting year-over-year growth of 10.09%,45.10% and 8.09%, respectively.
AWR, ELPC and NEE are projected to deliver long-term (three to five years) earnings growth of 6.93%,16.04% and 8.51%, respectively.