Utility stocks traded higher as operators scramble to modernize grids, expand transmission and hyperscalers look to secure the energy supplies needed to run huge data centers.
NextEra Energy recorded a big jump in profit for the second quarter from climbing revenue and a decline in costs. The clean-energy company posted a profit of $3.14 billion, or $1.50 a share, up from $2.03 billion, or 98 cents a share, in the same quarter a year earlier.
America has a record amount of electricity generation under development. Building it is becoming far more expensive. Surging demand for electricity from artificial-intelligence data centers-combined with equipment backlogs, permitting delays, tariffs and yearslong waits to connect to the grid-are pushing up construction costs for every type of power plant. Costs for building natural-gas plants and large-scale solar and wind projects have increased more than 10% since last year, according to Lazard's annual report on electricity-generation costs.
Write to Patrick Sheridan at patrick.sheridan@wsj.com
(END) Dow Jones Newswires
