Aug 6 (Reuters) - NRG Energy ( NRG ) beat Wall Street

estimates for second-quarter profit on Wednesday, as the utility

got a boost from surging power demand and improved retail

margins in its Texas unit.

The company also entered into a 295 megawatt long-term

retail deal to power data centers constructed on two NRG-owned

sites in Texas, with a potential to expand to about 1 gigawatt

across additional sites.

NRG is positioned to benefit from surging electricity demand

in Texas, driven in part by a boom in data centers, which

require steady, large-scale power supplies to support artificial

intelligence and cloud computing operations.

The U.S. Energy Information Administration (EIA) said in

April that power consumption in the country is expected to reach

record highs in 2025 and 2026.

NRG added that it plans to return $1.3 billion to

shareholders and about $345 million in common stock dividends in

2025 as part of its previously announced 2025 capital allocation

plan.

The company's Texas unit posted an adjusted core profit of

$512 million, up form last year's $452 million.

NRG's operating expenses rose to $6.74 billion in the

quarter ended June 30, from $5.25 billion a year ago.

On an adjusted basis, the company posted a profit of $1.73

per share, beating the average analyst estimate of $1.56,

according to data compiled by LSEG.

NRG reaffirmed its current-year adjusted profit forecast of

$6.75 to $7.75 per share.