Exelon data center demand up 80% as utility navigates regulatory fight.
Exelon (EXC.O), opens new tab said on Wednesday that its potential data center deals have jumped by about 80% from earlier this year as the U.S. electric utility awaits a decision from regulators on who pays for certain costs related to the fast-moving expansion of the centers.
Rising demand from the technology industry’s energy-hungry AI data centers has roused the sleepy U.S. power industry, leading to a flurry of deals and regulatory debates over the costs associated with the fast-moving expansion.
Exelon has about 11 gigawatts of likely data-center demand within its service territory, rising from 6 GW in the second quarter, executives said on a company earnings call. The requested capacity is currently in the engineering phase, and potential customers have already paid deposits to secure their positions.
Earlier this year, Exelon and fellow utility American Electric Power (AEP.O), opens new tab challenged the interconnection agreement for an Amazon (AMZN.O), opens new tab data center located on the site of a Pennsylvania nuclear power plant, in an agreement known as a co-located load.
When data centers are located on the site of the power plants that feed them, the co-located load agreement allows the centers to power up quickly without toiling in interconnection queues that can take years to clear.
Exelon and AEP said the agreement could raise power bills for everyday customers and reduce grid reliability. Proponents of the deal, including power plant operator Talen Energy (TLN.O), opens new tab, refute the utilities’ claims.
Calvin Butler, Exelon CEO, said on a third-quarter company earnings call:
We are not against co-locations.
“We just believe everyone should pay their fair share of utilizing the grid.”
Exelon and AEP have asked the Federal Energy Regulatory Commission to hold a hearing on the center’s interconnection request.
Exelon said the agency’s decision, along with a technical conference the regulator plans to hold this week on co-located loads, would provide clarity.
Earnings at Exelon’s Commonwealth Edison unit, the largest electric utility in Illinois, rose 8% on higher distribution rate base and return on regulatory assets.
The Chicago-based company posted adjusted operating earnings per share of 71 cents for the third quarter, versus analysts’ average estimate of 67 cents, according to data compiled by LSEG.
Exelon also said it has filed with the Delaware Public Service Commission to increase its annual natural gas rates customers pay by $36 million and expects a decision in the first quarter of 2026.
The company’s overall revenue was at $6.15 billion for the quarter ended Sept. 30, compared with estimates of $5.85 billion.
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Exelon data center demand up 80% as utility navigates regulatory fight. source
