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In recent weeks, NextEra Energy highlighted long-term growth ambitions at its investor events, including plans to add 15 GW of new data center-focused generation by 2035, expand US natural gas capacity via its Symmetry Energy Solutions acquisition, and support AI-driven power demand through large-scale projects for partners such as Google and Meta Platforms.
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Management also reiterated long-term adjusted EPS growth targets of at least 8% through 2035 and confirmed dividend growth plans through 2028, underscoring its intention to pair rising AI-related infrastructure investment with a consistent income profile for shareholders.
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Now we’ll explore how NextEra’s AI-linked power deals and reaffirmed dividend growth plans may reshape its existing investment narrative.
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To own NextEra Energy, you need to believe that large scale renewables and regulated utility earnings can support steady, long-term EPS and dividend growth, even as AI-driven data center demand reshapes power markets. The recent guidance reaffirmation around at least 8% adjusted EPS growth through 2035 and dividend increases through 2028 supports that thesis. The biggest near-term catalyst remains execution on AI-linked power deals, while elevated interest rates and financing costs still look like the most immediate risk, and the latest news does not materially change that.
The most relevant recent announcement is NextEra’s plan to build 15 GW of new power generation for data center hubs by 2035. This directly connects to its long-term AI power agreements with Google and Meta, reinforcing the growth side of the story that underpins management’s 8% EPS target. How efficiently NextEra funds and delivers this build-out, given its capital intensity and rate sensitivity, will likely influence whether those catalysts outweigh today’s financing and regulatory risks.
Yet even with these ambitious AI projects, investors should be aware that higher-for-longer interest costs and weaker free cash flow coverage of the dividend could…
Read the full narrative on NextEra Energy (it’s free!)
NextEra Energy’s narrative projects $35.9 billion revenue and $9.4 billion earnings by 2028.
Uncover how NextEra Energy’s forecasts yield a $91.14 fair value, a 14% upside to its current price.
Some of the most optimistic analysts were already penciling in about US$40.1 billion of revenue and US$10.7 billion of earnings by 2028, so if you buy into that view you are effectively betting that catalysts like AI data center demand and nuclear restarts will outweigh concerns such as Florida climate exposure and regulatory shifts, while recognizing that this new AI-focused news could either reinforce or challenge those earlier assumptions.
