PPL sees robust data center demand, tops estimates on higher Kentucky rates

By Varun Sahay and Dharna Bafna

May 8 (Reuters) - PPL Corp (PPL) on Friday underscored rising data-center power demand, citing a strong pipeline of requests and future load growth, as it narrowly beat first-quarter profit estimates, helped by higher retail rates in Kentucky.

U.S. electricity demand hit record levels in 2025 and is expected to accelerate further as Big Tech firms ramp up power usage at fast-growing data centers.

* Executives on a post-earnings call said PPL had active requests for nearly 12 gigawatts of data-center demand.

* They expect about 3.5 GW of new load by 2032, adding that advanced planning projects rose 12% to 28.3 GW.

* For the quarter ended March 31, PPL posted an adjusted profit of 63 cents per share, exceeding analysts' estimate of 62 cents, according to data compiled by LSEG.

* Quarterly earnings at its Kentucky segment rose 16.7% to 35 cents per share.

* CEO Vincent Sorgi said PPL remains on track to spend $5.1 billion in infrastructure spending in 2026, to modernize its electric and gas networks and adding new generation capacity in Kentucky, while maintaining affordable electricity.

* U.S. utilities are pushing to raise electricity rates to pay for infrastructure upgrades, raising concerns over inflated bills for consumers, as power grids come under growing pressure due to extreme weather and rising demand tied to industrial electrification and expansion of data centers.

* PPL reached a settlement in Pennsylvania with most intervening parties in its base-rate case, with administrative law judges recommending approval and a final commission decision expected by end of the second quarter, with new rates effective July 1.

* The company reported operating revenue of $2.77 billion, beating analysts' estimates of $2.66 billion. (Reporting by Varun Sahay and Dharna Bafna in Bengaluru; Editing by Diti Pujara)