*

Utility expects to sign first deal by end of year

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In early talks to supply an additional 4 GW for data

centers

(Adds details about data center demand, timeline, power

generation)

By Laila Kearney

July 29 (Reuters) -

Detroit-based power utility DTE Energy ( DTE ) is in

advanced talks to supply more than 3 gigawatts of electricity to

Big Tech data centers and expects to sign its first major deal

by the end of the year, company executives said on Tuesday.

U.S. power companies have been

inundated with requests

since early last year to provide electricity to the

energy-intensive data centers needed for the technology

industry's rapid artificial intelligence expansion.

The super-sized power demands are pushing power consumption

to record highs and prompting utilities to ramp up spending on

infrastructure.

"Our intention is to get a deal done by the end of the

year, and we are making nice progress," COO Joi Harris said on a

company earnings call.

The developers of the data centers in need of the 3 GW

of electricity have already secured land and various permits for

the facilities. And DTE is in early discussions to potentially

supply an additional 4 GW of data center capacity.

To provide power to the businesses, DTE will use its

existing infrastructure and construct new battery storage,

Harris said. Longer term, new natural gas-fired power generation

and other infrastructure will likely be needed to meet data

center demand, she added.

DTE missed Wall Street estimates for second-quarter

profit on Tuesday, hurt by lower income from its gas and energy

trading segment.

However, the company's electric segment - its largest unit

by net income - reported earnings of $318 million in the

April-to-June quarter, compared to a profit of $279 million a

year ago.

The utility reaffirmed full-year 2025 adjusted profit in the

range of $7.09 per share to $7.23 per share.

Analysts expect full-year profit to be $7.22 per share,

according to data compiled by LSEG.

DTE reported an adjusted profit per share of $1.36 for

the three months ended June 30, compared with analysts'

estimates of $1.40 per share.