July 31 (Reuters) - Utility Southern Co SO.N on Thursday increased its five-year capital expenditure plan by $13 billion to $76 billion to meet growing energy needs in the U.S., after beating Wall Street estimates for second-quarter profit.
With power demand rapidly increasing across the country, utilities are adding billions of dollars to their capital investment plans to fund upgrades to the electrical grid and related infrastructure.
According to the U.S. Energy Information Administration, power consumption in the country will hit record highs in 2025 and 2026 due to data centers dedicated to artificial intelligence and cryptocurrency, and as homes and businesses use more electricity and less fossil fuels for heating and transportation.
Atlanta, Georgia-based Southern Co posted an adjusted profit of 92 cents per share for the three months ended June 30, compared with analysts' average estimate of 90 cents, according to data compiled by LSEG.
The profit beat was on the back of an increase in commercial and industrial retail sales and higher demand for power.
Kilowatt-hour sales in the company's industrial segment rose 2.8% in the second quarter from a year earlier, while they grew 1.3% in the commercial segment.
Southern Co's operating revenue rose 7.9% to $6.97 billion in the quarter.
However, its operating expenses increased 15% to $5.21 billion.
Southern Co is the second-largest utility company by customer base in the U.S., supplying power in six states – Alabama, Georgia, Illinois, Mississippi, Tennessee and Virginia.
(Reporting by Sumit Saha in Bengaluru; Editing by Maju Samuel)
((Sumit.Saha@thomsonreuters.com;))
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