The US utility Alliant Energy is accelerating a major overhaul of its infrastructure, pivoting toward modernized natural gas plants and pursuing new large-scale customers. While adjustments have been made to specific data center project locations, the company’s long-term growth strategy remains firmly on track. This raises key questions about how billions in capital expenditure will impact grid reliability and future load management.
- Capital Plan: A $13.4 billion investment framework is set for the period through 2029.
- Load Growth Target: The company aims to secure an additional 2 to 4 gigawatts of capacity from major industrial customers.
- Modernization Drive: A continued shift from coal-fired generation to natural gas assets is underway.
Strategic Pivot to Gas and Grid Flexibility
A central component of Alliant Energy’s strategy is enhancing grid flexibility. The company is modernizing its Prairie Creek power plant in Cedar Rapids. Unit 3 ceased burning coal in December and the conversion to natural gas operation began at the start of this year.
Complementing this project, the utility plans to bring the new Cedar River Generating Station online by June 2027. This 94-megawatt facility will employ highly efficient reciprocating internal combustion engines (RICE). This technology allows for precise adjustments to power output in response to demand fluctuations, providing a crucial balancing mechanism for the increasing influx of variable renewable energy from wind and solar sources. Natural gas is thus positioned as a stabilizing force within the generation portfolio.
Data Center Project Adjustments
Alliant Energy is adapting its plans in collaboration with data center operator QTS. A major project originally slated for DeForest, Wisconsin, is being relocated. This decision stems from competitive pressures for economic sites and complexities related to land rezoning. Alliant and QTS are now jointly evaluating alternative locations in Wisconsin and Iowa capable of supporting the project’s substantial power requirements.
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This geographical shift does not alter the underlying financial framework. The company reaffirms its long-term $13.4 billion investment plan for 2026-2029. The strategic goal of adding 2 to 4 gigawatts of capacity through large industrial customers also remains unchanged.
Shareholder Calendar: Dividends and Earnings
February presents key dates for Alliant Energy investors. The quarterly dividend of $0.5350 per share, declared on January 12, will be distributed on February 17. The ex-dividend date was the previous trading session.
The company is scheduled to release its fourth quarter and full-year 2025 financial results after the US market closes on February 19. A subsequent conference call with analysts on February 20 is expected to provide further details on how management intends to bolster network capacity amidst expansion in renewable energy and rising demand from data centers.
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