Aug 12 (Reuters) - U.S. electric utilities sounded

bullish on demand from data centers powering the artificial

intelligence boom after striking several supply deals during the

second quarter, reinforcing market expectations of sales growth

through the year.

Top utilities, including American Electric Power ( AEP ) and

NextEra Energy, signed contracts in the recently

concluded quarter while others highlighted interest from

technology companies.

"We started to get some clarity about data center

opportunities and the numbers are staggering," said Timothy

Winter, portfolio manager at Gabelli Funds. As of March 31, it

owned stakes in six utility firms including PG&E Corp ( PCG ),

NextEra Energy and AES Corp. ( AES )

U.S. utilities, since the start of the year, have raised

their 2030 guidance of cumulative data center electricity demand

by roughly 50%, said Ben Levitt, associate director of power and

renewables, S&P Global Commodity Insights.

"The economic development pipeline over the period that

we've shared through 2028, data centers represent about 25% of

that pipeline. As we get out to 2030 and beyond, that 25%

grows," Duke Energy ( DUK ) CEO Lynn Good said on a

post-earnings call.

Utilities could see meaningful sales growth and are now

well-positioned to meet or exceed long-term growth targets after

two years of underperformance, analysts have said.

For the full year, utilities' earnings are estimated to

increase 12.4% versus 10.5% for the overall S&P 500, LSEG data

showed.

Over the next couple of quarters, analysts expect utilities

to provide updates on capital expenditure plans, as well as base

rate cases - a regulatory process required to increase service

charges - to help finance energy infrastructure upgrades.

"We think it's going to be a pretty active second half of

the year for the group, not only from a financing standpoint,

but from a core rate based in earnings revision standpoint as

well," said Nicholas Campanella, head of U.S. power and

utilities research at Barclays.

Hotter temperatures may also boost bottom-lines in the third

quarter.

Utilities should outperform other sectors even in case of a

recession, but the impact of the U.S. elections remains an

uncertainty, analysts said.