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Can Dominion Energy Leverage Data-Center Demand for Long-Term Growth?
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Key Takeaways
Dominion Energy had 53.8 GW of contracted data center capacity as of July 2026, up 11% from December 2025.
Dominion Energy plans to invest $65B through 2030 to expand infrastructure for rising electricity demand.
Dominion Energy retained its 5-7% long-term operating earnings growth outlook through 2030.
Dominion Energy (D - Free Report) is positioned to benefit from rising electricity demand driven by the expansion of data centers in Virginia. Data-center growth is contributing to higher electricity sales and peak demand across Dominion’s service territory.
Dominion Energy Virginia had approximately 53.8 gigawatts (GW) of contracted data-center capacity as of July 2026, up about 5.3 GW or 11% from December 2025. The total included 12 GW under electric service agreements (ESAs), 9.4 GW under construction letters of authorization and 32.4 GW under substation engineering letters of authorization. Dominion also noted that data-center customers continue to view Virginia’s network density, connectivity and established ecosystem as key advantages. The company retained its 5-7% long-term operating earnings growth outlook through 2030.
The company is expanding its infrastructure to accommodate rising electricity demand and plans to invest $65 billion through 2030. Its large-load contracting framework also includes mechanisms to recover infrastructure costs from data-center customers, helping reduce the risk of stranded costs and cost shifts to existing customers. Dominion and Santee Cooper received regulatory approval to jointly develop the 2,200-megawatt Canadys Station natural gas-fired combined-cycle facility in South Carolina to support rising electricity demand.
Overall, Dominion’s expanding data-center pipeline, rising electricity demand and infrastructure investments can support rate-base expansion, revenue growth and long-term earnings potential.
Rising Data-Center Demand Drives Utility Growth
Rising data center demand is increasing electricity consumption, creating opportunities for utilities to expand infrastructure and regulated investments. This can support electricity sales, rate-base growth and stronger long-term earnings prospects.
FirstEnergy Corp. (FE - Free Report) is capitalizing on rising data-center power demand, as its contracted and pipeline load increased to 24.8 GWs, marking about 30% growth from the first quarter.
PPL Corporation (PPL - Free Report) benefits from rising data-center demand across Pennsylvania and Kentucky, with nearly 31.8 GW of potential large-load demand in Pennsylvania, including nearly 11 GW under signed ESAs.
The Zacks Rundown on D
D’s Earnings Estimates
The Zacks Consensus Estimate for 2026 and 2027 earnings per share indicates a year-over-year increase of 4.97% and 6.21%, respectively.
Image Source: Zacks Investment Research
Debt to Capital
D's debt-to-capital ratio currently stands at 61.38%, lower than the Zacks Utility - Electric Power industry’s 62.33%.
Image Source: Zacks Investment Research
D’s Stock Price Performance
In the past six months, the company’s shares have plunged 2.7% compared with the industry’s 13.9% decline.
View the Zacks #1 Rank List
Image: Bigstock
Can Dominion Energy Leverage Data-Center Demand for Long-Term Growth?
Key Takeaways
Dominion Energy (D - Free Report) is positioned to benefit from rising electricity demand driven by the expansion of data centers in Virginia. Data-center growth is contributing to higher electricity sales and peak demand across Dominion’s service territory.
Dominion Energy Virginia had approximately 53.8 gigawatts (GW) of contracted data-center capacity as of July 2026, up about 5.3 GW or 11% from December 2025. The total included 12 GW under electric service agreements (ESAs), 9.4 GW under construction letters of authorization and 32.4 GW under substation engineering letters of authorization. Dominion also noted that data-center customers continue to view Virginia’s network density, connectivity and established ecosystem as key advantages. The company retained its 5-7% long-term operating earnings growth outlook through 2030.
The company is expanding its infrastructure to accommodate rising electricity demand and plans to invest $65 billion through 2030. Its large-load contracting framework also includes mechanisms to recover infrastructure costs from data-center customers, helping reduce the risk of stranded costs and cost shifts to existing customers. Dominion and Santee Cooper received regulatory approval to jointly develop the 2,200-megawatt Canadys Station natural gas-fired combined-cycle facility in South Carolina to support rising electricity demand.
Overall, Dominion’s expanding data-center pipeline, rising electricity demand and infrastructure investments can support rate-base expansion, revenue growth and long-term earnings potential.
Rising Data-Center Demand Drives Utility Growth
Rising data center demand is increasing electricity consumption, creating opportunities for utilities to expand infrastructure and regulated investments. This can support electricity sales, rate-base growth and stronger long-term earnings prospects.
FirstEnergy Corp. (FE - Free Report) is capitalizing on rising data-center power demand, as its contracted and pipeline load increased to 24.8 GWs, marking about 30% growth from the first quarter.
PPL Corporation (PPL - Free Report) benefits from rising data-center demand across Pennsylvania and Kentucky, with nearly 31.8 GW of potential large-load demand in Pennsylvania, including nearly 11 GW under signed ESAs.
The Zacks Rundown on D
D’s Earnings Estimates
The Zacks Consensus Estimate for 2026 and 2027 earnings per share indicates a year-over-year increase of 4.97% and 6.21%, respectively.
Image Source: Zacks Investment Research
Debt to Capital
D's debt-to-capital ratio currently stands at 61.38%, lower than the Zacks Utility - Electric Power industry’s 62.33%.
Image Source: Zacks Investment Research
D’s Stock Price Performance
In the past six months, the company’s shares have plunged 2.7% compared with the industry’s 13.9% decline.
Image Source: Zacks Investment Research
D’s Zacks Rank
Dominion currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.