July 25 (Reuters) - U.S. electric and gas utility DTE
Energy Co ( DTE ) beat second-quarter profit estimates on
Thursday on higher summer electricity demand, while the company
continued talks with data center developers about adding
possible gigawatts of new demand.
DTE Energy ( DTE ), which is based in Detroit, benefited from
hot temperatures and higher supply rates in the three months
ended on June 30. That boosted earnings at the company's
electric unit by 56.7% to $279 million in the June-end quarter.
Strength in the power segment, which serves 2.3 million
customers in Southeast Michigan, helped combat weakness in the
company's natural gas and non-utility units.
"DTE's solid financial performance allows us to keep
investing to improve how we produce and deliver energy for
customers," CFO David Ruud said.
The company plans to invest more than $4 billion this year
to upgrade its electric and gas grids, and has already shelled
out more than $2 billion during the first half of the year.
Company executives, meanwhile, said they were in touch
with data center developers about the possibility of building
the giant computer warehouses, which are needed to expand
artificial intelligence and cloud computing.
"We're seeing demand numbers in the thousands of
megawatts," said DTE Energy ( DTE ) Chief Financial Officer David Ruud,
who added that the Detroit area's lack of natural disasters,
climate and power prices were attracting data center developer
interest.
Data centers is quickly driving up U.S. electricity
consumption growth, but it is still unclear where the bulk of
the new demand will be located.
DTE posted operating earnings of $1.43 per share in the
second quarter, above analysts' average estimate of $1.21,
according to LSEG data.