Dominion tops quarterly estimates on power demand from Virginia, South Carolina

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August 1 (Reuters) -Dominion Energy on Friday beat second-quarter revenue and profit estimates, helped by rising power demand in Virginia and South Carolina.

Electricity demand has been surging in the U.S. as technology companies build power-guzzling data centers to run their artificial intelligence models.

Power consumption in the country is expected to reach record highs in 2025 and 2026, the U.S. Energy Information Administration said earlier this year, driven by the data centers, cryptocurrency applications and electrification of homes and cars.

Adjusted operating earnings from Dominion’s Virginia segment rose 13.2% to $549 million in the second quarter, and that from the South Carolina segment rose about 58% to $109 million.

Dominion’s Virginia utility serves the largest data center cluster in the world, with a higher capacity than the next four largest clusters combined, the company said.

Quarterly revenue was $3.81 billion, up from $3.49 billion a year ago, and beating analysts’ estimate of $3.65 billion, according to data compiled by LSEG.

However, company’s interest expenses rose about 7.5% to $505 million in the second quarter.

Dominion Energy reaffirmed its full-year 2025 operating profit forecast of between $3.28 per share and $3.52 per share; analysts had estimated a profit of $3.39 per share.

The utility’s operating earnings on an adjusted basis was 75 cents per share for the three months ended June 30, compared with analysts’ average estimate of 68 cents per share.

(Reporting by Sumit Saha in Bengaluru; Editing by Sahal Muhammed)