Alliant Energy Secures $5.1B Federal Loan, Raises Targets on Data Center Expansion

Alliant Energy Corporation has finalized a 30-year, $5.1 billion lower-interest federal loan package from the Department of Energy to back new generation and storage projects. The financing is projected to generate up to $1.2 billion in cumulative savings for customers over traditional debt. The closing comes alongside an updated capital spending plan totaling $15.9 billion for 2027 through 2030, marking a 19% increase over the company's prior four-year capital framework.

The utility reported third-quarter 2026 revenue of US$1,285 million, climbing from US$1,210 million in the prior-year period. Net income excluding extra items reached US$398 million, up from US$281 million, yielding basic earnings of US$1.53 per share and GAAP earnings of $1.52 per share. Following the results, management narrowed its 2026 ongoing earnings guidance to the top half of its original range at $3.41 to $3.46 per share. For 2027, ongoing earnings guidance was set between $3.63 and $3.73 per share, accompanied by a targeted common stock dividend of $2.25 per share, representing a 5% increase.

Central to Alliant Energy's long-term plan is an expanding pipeline of large power users. The utility has five executed electric service agreements with data centers representing about 3.4 GW of contracted load, along with an active pipeline of 2 to 4 GW in additional large-load opportunities. Management expects these agreements to drive greater than 60% contracted demand growth by 2031. Current earnings of US$817.0 million are set against analyst expectations of US$1.2 billion in earnings and roughly US$5.4 billion in revenue by 2029.

Despite the growth trajectory, the company faces rising operations and maintenance expenses tied to fleet expansion, along with growing financing and depreciation costs. Valuation models reflect divergent views on these trade-offs. Simply Wall St reported that its discounted cash flow model values the company at $67.92 per share, indicating potential overvaluation relative to a recent close of $72.67. Conversely, an analyst target narrative on the platform estimated fair value at $76.29, citing multi-year growth from data center onboarding.