American Electric Power (AEP) announced a five-year, $54 billion capital expenditure plan, marking a 25 percent increase from previous projections. The plan focuses heavily on transmission infrastructure to support growing demand from data centers and other large power consumers.
To fund its build-out, AEP is considering further asset sales, cost-cutting through management restructuring, and equity strategies. CEO Bill Furman hinted at possible sales but provided no specific details.
AEP expects a 20-gigawatt load increase by 2029, a 60 percent jump from its current peak, primarily driven by data centers. This demand surge reflects the power-intensive needs of AI-driven data centers and similar facilities.
The company exceeded third-quarter profit estimates as increased electricity use by data centers boosted commercial demand. AEP’s commercial load grew over 10 percent year-on-year, with projected growth averaging 20 percent…
