NextEra Energy (NEE) +1.4% in Wednesday’s trading to its highest level in more than three years after it signed a memorandum of understanding with Xcel Energy (XEL) to accelerate the delivery of generation resources to serve large load customers, including data centers.
The two companies said they expect to support existing and new large load opportunities across Xcel’s (XEL) service territories through improved collaboration on generation, storage and associated transmission investments, which will enable them to better anticipate system needs and rapidly assess where large customer demand intersects with available grid and power assets.
Xcel (XEL) said it expects the agreement will allow it to increase the data center demand that it can serve through the 2030s.
Key commercial terms have been agreed upon in the MoU, and a formal joint development agreement is expected to be executed in the coming months, the companies said.