Southern Company Lifts 2026 Guidance as Data Center Electricity Usage Surges

Southern Company has increased its full-year earnings expectations after expanding electricity consumption from tech facilities fueled third-quarter financial growth. In its third-quarter 2026 release, the utility reported operating revenue of approximately $8.8 billion, a 13 percent climb from the prior-year period. Reported net income reached $2 billion, or $1.77 per share, while adjusted earnings per share rose to $1.94 from $1.60.

Following the results, management lifted its full-year 2026 adjusted earnings target to approximately $4.70 per share, moving past its initial guidance range of $4.50 to $4.60 per share. The utility anticipates fourth-quarter adjusted earnings of 30 cents per share. Performance in the quarter benefited from customer additions, warm temperatures, robust Southern Power earnings, and strong commercial electricity demand, although increased operating costs, higher taxes, and a larger share count tempered the total gains.

Data center operations have become a primary catalyst for power demand across the utility's footprint. Electricity used by data centers increased 59 percent year over year in the third quarter and 52 percent over the first nine months of 2026. Commercial electricity sales advanced 7.3 percent on a weather-adjusted basis, and overall weather-normalized retail sales grew 3.5 percent. Coverage from 24/7 Wall St. pointed to a sharp earnings increase at Georgia Power as massive computing sites began operating.

The utility is also accumulating substantial commitments for future electricity delivery. By the close of the third quarter, Southern Company had secured roughly 21 gigawatts of signed contracts with large-load customers, with Georgia Power and Alabama Power each contributing about 2 gigawatts of contracted load since the prior quarter. An additional 7 gigawatts of potential business remains under advanced negotiation across Mississippi, Alabama, and Georgia.

To support expanding customer needs, chief financial officer David Poroch detailed roughly $4 billion in fresh infrastructure investments beyond the existing $81 billion base capital program. These outlays include natural gas facility enhancements, pipeline expansion, and nuclear upgrades linked to a partnership with Google. Management indicated that the five-year capital budget could near $100 billion if further company-owned projects gain regulatory clearance. Southern Company projects remaining equity needs of about $2 billion through 2030 and targets a 17 percent funds-from-operations-to-debt ratio by 2029.