Key facts
- Dominion Energy reported second-quarter adjusted earnings of 79 cents per share, exceeding analyst expectations of 68 cents.
- Quarterly revenue reached $4.48 billion, surpassing the $4.04 billion estimate.
- Demand from data centers in Dominion's service territory has grown significantly, with nearly 53.8 gigawatts contracted as of July.
- Operating expenses increased to $4.15 billion from $2.71 billion in the prior year.
- Dominion and NextEra Energy announced a $66.8 billion merger deal in May, which faces regulatory hurdles.
Dominion Energy, a major U.S. electric utility serving a region with a significant concentration of data centers, announced its second-quarter financial results, which surpassed analyst expectations. The company's performance was bolstered by robust demand from data centers, particularly those supporting artificial intelligence infrastructure, which is a key growth driver in its service territory, Northern Virginia.
Despite a substantial increase in operating expenses, which surged to $4.15 billion from $2.71 billion in the same period last year, Dominion managed to deliver strong revenue and profit figures. The company's Virginia segment saw a notable 22% rise in adjusted operating earnings, reaching $670 million, as it continues to secure capacity for power-hungry server warehouses. As of July, Dominion had contracted nearly 53.8 gigawatts of data center capacity, an increase of 5.3 gigawatts since December.
However, the utility's South Carolina segment experienced a slight downturn, with adjusted operating earnings falling approximately 3.7% to $105 million. Overall, Dominion posted adjusted earnings of 79 cents per share, exceeding the consensus estimate of 68 cents per share, and its quarterly revenue of $4.48 billion also beat the average analyst forecast of $4.04 billion.
In a significant development, Dominion and NextEra Energy announced a $66.8 billion merger deal in May, which, if completed, would create one of the world's largest electric utilities. The companies are now navigating a series of regulatory approvals, with key evidentiary hearings slated to commence on November 17.