DTE Energy Negotiates Power Supply for Big Tech Data Centers

Detroit-based utility company DTE Energy is engaged in advanced negotiations to supply over 3 gigawatts of electricity to major technology data centers, with an expectation to finalize its first significant agreement by the end of the year. The surge in demand for energy has been driven by the rapid expansion of artificial intelligence technologies, leading U.S. power providers to face a rising number of requests for electricity to support these energy-intensive facilities.

During a recent earnings call, DTE Energy Chief Operating Officer, Joi Harris, expressed optimism regarding the negotiations, stating, “Our intention is to get a deal done by the end of the year, and we are making nice progress.” The developers of the proposed data centers have already acquired land and secured necessary permits, positioning them for immediate development.

Infrastructure Investments Needed for Future Demands

DTE Energy is also exploring the possibility of supplying an additional 4 gigawatts of capacity for future data center projects. To meet the growing energy demands, the utility plans to utilize its existing infrastructure while also constructing new battery storage systems. Harris noted that, in the long term, new natural gas-fired power generation and other infrastructure investments will likely be required to adequately support the anticipated demand from data centers.

In its recent earnings report, DTE Energy announced that it fell short of Wall Street’s profit estimates for the second quarter, primarily due to reduced income from its gas and energy trading operations. Nevertheless, the company’s electric segment, which is its largest unit by net income, reported earnings of $318 million for the period from April to June, an increase from $279 million during the same period last year.

Outlook for 2025 and Performance Insights

Looking ahead, DTE Energy has reaffirmed its adjusted profit guidance for the full year of 2025, projecting earnings between $7.09 and $7.23 per share. Analysts predict that the utility will achieve an average profit of $7.22 per share for the year, according to data compiled by LSEG. The company reported an adjusted profit per share of $1.36 for the three months ending June 30, which fell slightly below analysts’ expectations of $1.40 per share.

As DTE Energy continues to navigate the complexities of the evolving energy landscape, the outcomes of these negotiations and infrastructure developments will be critical in determining the utility’s capacity to meet future energy demands in the technology sector.