(Reuters) - Duke Energy ( DUK ) on Thursday raised its five-year capital expenditure plan to $83 billion, a 13.7% jump, as the utility looks to boost its grid to profit from an oncoming demand from data centers and increased electrification.

U.S. power demand is expected to hit record highs in 2025 and 2026 due to growing demand from data centers dedicated to artificial intelligence and cryptocurrency, and from homes and businesses for heat and transportation, according to the U.S. Energy Information Administration.

Duke plans to issue $6.5 billion of equity over its 2025-2029 plan, including $1 billion this year, as it plans to fund roughly 40% of the increase in its capital plan with equity.

To grow supply, it expects to add nearly five gigawatts (GW) of natural gas power in service by 2029-end.

The company's 2024 to 2028 capex plan stood at $73 billion.

For the fourth quarter ended December 31, income from Duke's electric and gas segments rose 5% overall to around $1.4 billion from the same reporting period last year.

However, due to interest expenses, a high effective tax rate and storm costs, the power provider posted a profit of $1.66 per share on an adjusted basis for the reported quarter, in line with analysts' estimates, according to data complied by LSEG.

Duke, the largest utility covering North and South Carolina, saw Hurricanes Debby, Milton and Helene hit its service territories, which ripped away miles of transmission lines and power poles, leaving tens of thousands of its customers without electricity.

Higher-for-longer interest rates can weigh on utilities, as it makes investing in the construction and maintenance of critical infrastructure such as electrical grids more expensive.

Revenues of the Charlotte, North Carolina-based utility came in at $7.36 billion, beating analysts' average estimate of $7.33 billion, largely due to higher residential sales and higher rates.

Duke forecasted 2025 earnings to be in the range to $6.17 per share to $6.42 per share, the midpoint of which is slightly below estimates of $6.33 per share.