Evergy EVRG is positioned to benefit from rising electricity demand from data centers, supported by economic development across its Kansas and Missouri service territories. New data center projects are expected to increase power consumption, while associated infrastructure investments can expand the company’s generation and transmission requirements.
In the second quarter of 2026, Evergy disclosed that it had signed electric service agreements (“ESA”) covering approximately 2,600 megawatts (MW) of projected peak steady-state data center demand. The agreements cover three new projects and expansions of two previously announced projects, with customer service starting or expected to start between 2026 and 2028. Evergy also expects to execute at least one additional ESA in 2026, potentially extending load growth into the 2030s.
EVRG's data center opportunity extends beyond signed agreements. The company has identified approximately 2-2.5 gigawatts (GW) of expansion opportunities at or near existing customer sites and another 1-2 GW of potential Tier 2 customers. EVRG said these opportunities are not included in its five-year financial plan, while the broader pipeline contains more than 10 GW of additional potential load.
Evergy plans $21.6 billion in capital investments through 2030, supporting approximately 12% annual rate-base growth while expanding generation and grid infrastructure to accommodate rising data center demand. The company is targeting 6-8% adjusted earnings growth through 2030.
Overall, Evergy’s contracted data center demand, expansion opportunities and planned capital investments could support sustained load growth, rate-base expansion and long-term earnings growth.
Rising Data Center Load Supports Utility Expansion
Rising data center load is reshaping the electric utility industry, encouraging utilities to expand generation, transmission and distribution infrastructure. Growing power requirements are also accelerating grid investments and capacity additions.
FirstEnergy Corp. FE is seeing stronger electricity demand from data center development, with contracted and pipeline demand reaching 24.8 GW, approximately 30% higher than in the first quarter.
PPL Corporation PPL is benefiting from expanding data center demand, with Pennsylvania’s advanced-stage data center pipeline reaching 31.8 GW, including more than 11 GW under signed ESAs. Kentucky’s economic development pipeline totals 13.7 GW, including 11.6 GW tied to data center opportunities.
EVRG’s Earnings Estimates
The Zacks Consensus Estimate for 2026 and 2027 EPS indicates an increase of 10.97% and 9.08%, respectively, year over year.
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EVRG’s Debt to Capital
EVRG's debt-to-capital ratio currently stands at 61.62%, lower than the Utility-Electric Power industry’s 62.33%.
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EVRG’s Stock Price Performance
In the past year, the company’s shares have risen 5.1% compared with the industry’s 1% growth.
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EVRG’s Zacks Rank
EVRG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).