Key Highlights

● Alliant raised its Capital spending plan to $15.9 billion.

● It cited 3.4 gigawatts of data-center demand.

● Third-quarter EPS of $1.52 beat the $1.09 estimate.

● 2027 EPS guidance is $3.63 to $3.73.

Alliant (NASDAQ:LNT) Energy raised its capital spending plan to $15.9 billion, citing 3.4 gigawatts of data-center demand, according to market data. The Madison, Wisconsin-based utility, which trades on the Nasdaq as LNT, made the announcement alongside third-quarter results that comfortably beat expectations.

Alliant reported third-quarter Earnings of $1.52 a share, against the $1.09 analysts had expected. It set 2027 earnings guidance of $3.63 to $3.73 a share. The shares rose on Friday, October 30, 2026.

Why data centers need so much power

Data centers that train and run AI models consume enormous amounts of electricity. A gigawatt is a billion watts, enough to power a large number of homes, so 3.4 gigawatts of Demand represents a major new load on Alliant's system. Meeting it requires new generation, transmission lines and substations, which is why the capital plan rose.

For regulated utilities, higher capital spending can mean higher earnings over time. Regulators typically allow utilities to earn a return on the investments they make in their networks, so a bigger spending plan expands the base on which they earn.

The AI paradox

Alliant's announcement came on a day when investors were dumping AI stocks. Wall Street had its worst session since June. The S&P 500 fell 140.32 points to 7,580.07, the Dow Jones Industrial Average dropped 572.25 points to 51,770.31 and the Nasdaq Composite lost 747.73 points to 25,437.00, its worst day since June 5.

The selling centered on AI spending. Amazon (NASDAQ:AMZN) reported trailing 12-month free Cash Flow of negative $42.4 billion and held its 2026 capital spending at about $220 billion while signaling another increase next year. Alphabet (NASDAQ:GOOGL)'s capital spending reached $51.4 billion in the third quarter. A market analyst said that "Together, Amazon, Google, Microsoft (NASDAQ:MSFT) and Meta (NASDAQ:META) spent more than $200bn in the third quarter alone."

That spending is precisely what fuels Utility demand. While investors questioned whether technology companies will earn a return on their AI investments, utilities like Alliant stand to collect regulated returns on the power plants and lines needed to serve those data centers.

Alliant was not alone among utilities posting strong results. Dominion Energy (NYSE:D) reported third-quarter operating earnings of $1.28 a share against $1.06 expected and said it expects to finish in the top half of its full-year range. Exelon (NASDAQ:EXC) posted adjusted earnings of $0.87 a share, above expectations, and narrowed its 2026 guidance to $2.85 to $2.91 a share.

The utility sector rose on Friday as investors rotated into defensive stocks, and it posted strong gains for October, according to market data.

Risks to the outlook

Data-center growth is not guaranteed. Investors are watching state and local races in the midterm elections on Tuesday, November 3, including in Texas, for their implications for data-center development. An Investment manager said of a possible Democratic sweep: "I think that will be seen as negative for both the AI names".

Interest rates also matter. Utilities borrow heavily to fund spending, and futures markets are pricing in a Federal Reserve rate hike in December.

What to watch

Investors will look for detail on how Alliant plans to finance its larger spending program and how quickly the data-center load arrives. The midterm results, the October jobs report on Friday, November 6, and the Fed's December decision will all shape the backdrop for utilities.