Alliant Energy (LNT) is in a "unique" position to benefit from additional load and generation investment required to meet the rising demand for data centers, UBS Securities said in a note Friday.

The analysts said that while there are concerns about whether Alliant can secure tax incentives for about 450 megawatts of clean energy projects, the company remains confident it can do so directly, through third-party developers, or by shifting to alternative technologies if needed.

They also noted "significant and sustained" interest from data centers seeking reliable power solutions, with nearby utilities announcing projects as large as 2 gigawatts. Alliant has already indicated it will need around 1.5 gigawatts of new generation capacity to meet growing demand from these customers.

The analysts raised their 2028 earnings per share estimate to $4.13, compared with the consensus of $3.97. The higher outlook reflects expectations for the QTS-Madison data center project, which is expected to be included in the company's plans during its Q3 earnings call on Nov. 7.

"We believe the stock's current valuation reflects minimal value for data center growth, considering the magnitude of the capex relative to Alliant Energy's size, we believe this represents a significant growth opportunity," they added.

The firm also lifted its 2027 EPS forecast to $3.71 from $3.68.

UBS upgraded Alliant Energy to buy from neutral and raised its price target to $79 from $74.

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