Electricity demand in the US has experienced minimal growth for three decades, typically around 0% to 0.5% annually. However, Harry Sideris, CEO of Duke Energy, envisions a dramatic change, predicting that this figure could rise tenfold in the near future. To support this projection, the company has unveiled the most substantial capital plan in the utility sector’s history, totaling $103 billion, and is designed to enhance generation capacity significantly by 2030.
Duke Energy's ambitious plan aims to add over 13 gigawatts of generation capacity by 2030. The utility is targeting an annual earnings per share growth rate of between 5% and 7%. During discussions at significant industry events, Sideris indicated that the acceleration of electricity demand is expected to begin around 2026, and the company's commitments to large-load customers have already escalated, with expectations to exceed 3 gigawatts by early 2024. Data centers and cryptocurrency mining are set to contribute roughly 1.5 gigawatts of this demand.
How will the costs of new infrastructure be covered?
To finance the infrastructure needed for this expansion, Duke Energy is structuring contracts so that large-load customers, primarily data centers, take on responsibility for costs. The company has also raised its profit projections for 2026, attributing this growth to strong demand driven by advancements in artificial intelligence and manufacturing.
What role does cryptocurrency play in this demand?
While earlier estimates suggested that crypto mining would account for 3% to 4% of new large-load electricity demand through 2033, this figure is now understood to be separate from data center electricity consumption. Together, the growth from both sectors is expected to constitute nearly half of the additional capacity that Duke Energy will require into the early 2030s. Despite the influence of cryptocurrencies on power demand, conversations at Duke do not typically zero in on specific currencies or regulations pertaining to blockchain technology.