RWE to invest €17 B in the U.S. to power data centers
RWE will expand more aggressively in the United States, a market where data centers have significantly fueled power demand, Germany's largest power producer said, saying this would also include new gas-fired power plants.
The move marks a major push by Germany's biggest utility into a market where the rapid construction of data centers, as well as the need to modernize ageing power infrastructure, has fueled a boom in generation assets and network equipment.
This is mainly driven by big tech firms, so-called hyperscalers, which are planning to spend $600 billion this year on artificial intelligence, a technology that needs substantial power supply and has also benefited German industrial peers.
Shares in the company, the second-best-performing German blue-chip stock so far this year after Siemens Energy, rose to their highest level since June 2010 and were still up 3.5% at 1146 GMT.
U.S. is RWE's most important growth market. "The message we're getting is this: 'Demand for electricity is so high, build whatever you can'," RWE CEO Markus Krebber told journalists during the group's annual press conference.
RWE said the new plants were planned at sites where it had existing grid connections and the first unit would be in operation by the end of the decade, adding the group was targeting small new projects, not big acquisitions.
Overall, the United States, where RWE already has 13 gigawatts (GW) of installed solar, wind and battery storage capacity, will account for 17 billion euros ($20 billion), or nearly half, of its planned spending by 2031.
It said gas-fired power plants would account for around 1 billion euros of that sum.
Installed U.S. capacity is expected to increase to 22 GW as a result, the company said, also releasing full-year results that showed core profit fell 10% to 5.1 billion euros, still beating the 4.9 billion euro poll forecast.
RWE said it was developing a 5 GW pipeline of gas-fired power plant projects in the United States, targeting Texas as well as Midwestern states, adding that more than 3 GW would be realized by 2035.
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