July 31 (Reuters) - U.S. electric and gas utility CMS

Energy ( CMS/PB ) on Thursday beat Wall Street estimates for

second-quarter profit, driven by increased power demand.

Utility companies in the U.S. are experiencing a surge in

demand as AI usage drives up the need for more power-guzzling

data centers.

Residences and businesses have also been using more

electricity for heating and transportation purposes.

The U.S. Energy Information Administration in February

forecast power demand to hit record highs in 2025 and 2026.

CMS Energy ( CMS/PB ) also announced an agreement with a new data

center that is expected to add up to 1 gigawatt of load growth

in its service territory, along with additional economic

benefits for Michigan.

Its revenue rose 14.4% to $1.84 billion for the first

quarter from a year earlier.

However, the company's total quarterly operating expenses

rose to $1.52 billion from $1.32 billion a year ago.

The Jackson, Michigan-based firm earned 71 cents per share

on an adjusted basis in the quarter, compared with analysts'

estimates of 69 cents per share, according to LSEG data.