FirstEnergy rides surge in data center demand

FirstEnergy (FE) is seeing a sharp rise in power demand from data centers, with contracted load nearly doubling since year-end 2025 to 7.9 gigawatts by the third quarter of 2026.

Including both contracted and pipeline volumes, total data center demand across FirstEnergy’s footprint reached 27 gigawatts at the end of the third quarter of 2026, up from 24.8 gigawatts at the end of the second quarter. That nearly 9% quarter-on-quarter increase reflects a mix of signed agreements and projects still under negotiation or development.

Management reports that contracted and pipeline data center demand together are up nearly 60% since year-end, including a 90% increase in contracted demand. FirstEnergy is in active negotiations for approximately 4 gigawatts of additional large-load contracts with data center customers, which are not yet counted in its contracted totals. Executives describe continuing interest from large "hyperscale" facilities across the company’s service territory and indicate that they expect demand to extend well beyond the next five years.

Beyond its current contracted and pipeline figures, FirstEnergy has identified 117 gigawatts of potential demand in load studies for projects larger than 500 megawatts that are not yet included in its formal pipeline. These studies span data center and industrial customers across the PJM Interconnection region in which the company operates, signaling a large pool of possible future load additions.

West Virginia has become a focal point of FirstEnergy’s data center expansion, with pipeline demand in the state rising roughly six-fold to around 6 gigawatts. The company links this momentum to a supportive legislative and regulatory environment that is drawing new businesses and large-load projects. Discussions with prospective customers in the state cover delivery schedules, pricing, risk mitigation and community benefits frameworks.

To support this concentration of new demand, FirstEnergy is planning the Maidsville Energy Generating Facility, a combined-cycle gas turbine project in West Virginia. The company expects a regulatory decision on Maidsville in the fourth quarter of 2026 and views the plant and potential additional generation options as ways to serve new large loads while protecting existing customers.

FirstEnergy’s financial results are tracking ahead of expectations alongside the demand surge. For the third quarter of 2026, adjusted earnings per share were $0.98, above a forecast of $0.90 and higher than non-GAAP earnings of $0.83 per share in the third quarter of 2025. Revenue in the quarter was $4.56 billion, exceeding an estimated $4.29 billion, with growth in both revenue and net income accelerating.

The company reported GAAP earnings of $0.96 per share for the quarter, compared with $0.76 per share a year earlier. Management reaffirmed full-year 2026 core EPS guidance of $2.62 to $2.82 and is targeting total shareholder return of about 12%, supported by a five-year $36 billion capital program. At the close of trading on October 28, FirstEnergy shares ended at $46.40, up $0.13 or 0.28% on the day.