DTE Energy Lifts Five-Year Spending Plan to $44 Billion on Data Centre Demand

The new plan covers 2027 to 2031 and is about 30% larger than the 2026-2030 plan it replaces, according to an investor presentation the Detroit-based company filed with the US Securities and Exchange Commission alongside its third-quarter results on November 5. Most of the increase is at DTE Electric, where planned spending rises to $39 billion from $30 billion. Within that, investment in what the company calls cleaner generation rises to $23 billion from $15 billion, and distribution spending to $12 billion from $11 billion. Planned spending at DTE Gas rises to $5.2 billion from $4.5 billion.

The plan shows how AI computing demand is changing the finances of regulated US utilities, which recover their investment through rates and earn a return on it. DTE also raised its long-term growth target. It now aims for operating earnings per share to grow at more than 9% a year from 2027 to 2031, up from a previous target of 6% to 8% through 2030, according to the presentation.

The company has two signed data centre customers. A 1.4 GW agreement with Oracle has been approved, construction is under way and load is expected to ramp up in 2027. The Michigan Public Service Commission has approved DTE's energy contracts with Google for a planned data centre in Van Buren Township, a 1 GW agreement with load expected from 2028.

The pipeline is larger still. DTE put its remaining data centre opportunities at 5 GW to 6 GW, of which about 2 GW is in advanced discussions with hyperscalers. It is aiming to sign an agreement for that capacity by the end of 2026, with a further 3 GW to 4 GW of opportunities at an earlier stage.

DTE is presenting the data centres as a way to keep bills down for existing customers, a sensitive point as electricity prices become a political issue around large computing campuses. In its earnings release the company said data centre customers would cover the full cost of the energy and grid investments needed to serve them and would contribute billions of dollars to the electric system through 2045.

To help fund the plan, DTE agreed to sell DTE Vantage, its non-utility business, for about $3 billion to institutional investors advised by the Global Infrastructure group at J.P. Morgan Asset Management. The release says the deal is expected to close in the first half of 2027, although a footnote in the presentation refers to closing by the end of 2026. The company said the proceeds would reduce how much new equity it needs to raise. It now targets average equity issuance of about $1 billion a year from 2027 to 2031 and has pushed $500 million of 2026 equity sold under forward contracts into 2027.

Chief executive Joi Harris said in the release that the sale "positions DTE as a high-growth, premium utility with a stronger long-term outlook."

Third-quarter reported earnings rose to $470 million, or $2.25 a diluted share, from $419 million, or $2.01, a year earlier. Operating earnings were $481 million, or $2.30 a share, against $468 million, or $2.25. DTE confirmed its 2026 operating earnings guidance of $7.59 to $7.73 a share and set the same range as a pro forma 2027 baseline after the Vantage sale.

DTE Electric has also filed a 20-year integrated resource plan with state regulators that includes renewables, storage, nuclear and natural gas. The company said the plan keeps its commitment to stop using coal in 2032, would cut carbon dioxide emissions by 84%, and is projected to cost $3.5 billion less than its previous plan. The commission's review of that plan, and whether DTE signs the 2 GW hyperscaler deal by its year-end target, are the next tests of the bigger spending programme.