DTE lifts EPS growth target above 9% on data center demand
DTE raised its operating EPS growth target to greater than 9% a year through 2031, from 6% to 8%, and lifted its five-year utility investment plan to $44.2 billion from $34.5 billion.
Key takeaways
- DTE Energy (DTE) raised its operating EPS growth target to greater than 9% a year from 2027 through 2031, from 6% to 8%. Its five-year capital plan rose to $44.2 billion from $34.5 billion, driven by data center development. The company expects to close its Vantage unit sale in the first half of 2027.
DTE Energy (DTE) raised its long-term operating EPS growth target to greater than 9% a year through 2031, from 6% to 8% a year through 2030, measured from the 2026 guidance midpoint. Growth starts from a 2027 operating EPS range of $7.59 to $7.73, well over 9% in 2028 and 2029 as data center investments ramp up, and at least 9% in 2030 and 2031.
Shares rose 1.3% at 9:36 a.m. ET, from a $135.08 close.
Capital plan
The five-year utility investment plan for 2027 through 2031 totals $44.2 billion, up from $34.5 billion for 2026 through 2030, an increase of nearly 30%, driven by data center development and investment in reliability and cleaner energy.
DTE Electric accounts for $39 billion of the plan and DTE Gas for $5.2 billion. Within DTE Electric, the plan includes $23 billion for cleaner generation and $12 billion for distribution infrastructure.
The Oracle load ramp could allow DTE Electric to delay its next rate case until at least 2028, and the Google ramp could extend that window.
Vantage sale
DTE is selling Vantage to institutional investors advised by the Global Infrastructure group at J.P. Morgan Asset Management for $3 billion, with closing expected in the first half of 2027. Proceeds will be invested in the utility businesses, reducing equity and debt needs. About $500 million of 2026 equity sold under forward contracts is deferred to 2027.
Data center contracts and guidance
The company has 2.4 GW of executed data center agreements, including a 1.4 GW Oracle agreement with construction underway and a 1 GW Google agreement approved by the MPSC. A pipeline of 5 to 6 GW continues to advance, with 2 GW in advanced discussions.
DTE expects to achieve the high end of its 2026 operating EPS guidance of $7.59 to $7.73. Non-utility earnings are tracking above guidance, primarily due to higher investment and production tax credits at DTE Vantage.
The company plans to increase its dividend 7% in 2027 and targets average annual equity issuances of about $1 billion from 2027 through 2031.