Southern Company Predicts Lower Profits Despite $81 Billion Infrastructure Investment

Southern Company announced Thursday it expects annual profits to fall short of analyst predictions while increasing its five-year spending plan to $81 billion. The utility giant is investing heavily to meet growing electricity demands from data centers and industrial customers, including major tech companies like Google and Microsoft.

Southern Company announced Thursday that it anticipates annual earnings will fall below what Wall Street analysts predicted, while simultaneously increasing its infrastructure investment plan as the utility prepares for extraordinary electricity demands from major industrial clients and data centers.

The nation’s utility companies have been pouring significant resources into modernizing electrical infrastructure as they confront severe weather events and surging power consumption from energy-intensive data centers supporting artificial intelligence and cryptocurrency operations, plus growing adoption of electric heating systems and vehicles by consumers and businesses.

The company plans to invest approximately $81 billion between 2026 and 2030, an increase from its previous five-year investment plan of $76 billion.

Southern Company announced it has secured agreements for 10 gigawatts of major customer load throughout Alabama, Georgia and Mississippi, with clients including tech giants Google, Meta, Microsoft and Compass Datacenters. Company stock prices climbed more than 2% during pre-market trading.

Serving 9 million customers across Alabama, Georgia, Illinois, Mississippi, Tennessee and Virginia, Southern Company holds the position as America’s second-largest utility provider.

During the fourth quarter ending December 31, the company reported adjusted earnings of 55 cents per share, falling short of the 57-cent expectation from analysts surveyed by LSEG.

Operating costs increased 14.7% during the quarter, while company revenue grew 10%.

The Atlanta-based utility company projects adjusted earnings for 2026 will range from $4.50 to $4.60 per share, with the middle estimate slightly under analyst projections of $4.56 per share.