Top US data center-serving utility Dominion tops profit estimates

By Sumit Saha and ‌Laila Kearney

July 31 (Reuters) - ​Dominion ​Energy, the U.S. electric utility covering the world's biggest data center territory, reported better-than-expected second-quarter profit and revenue on Friday as demand ‌from server warehouses grew beyond 50 gigawatts and offset rising operating ⁠expenses.

Adjusted operating earnings from Dominion's Virginia segment rose 22% to $670 million during the quarter, while ‌overall operating expenses surged ‌to $4.15 billion from $2.71 billion last year, as utilities continued to spend more on fuel, grid upgrades and maintenance to support growing electricity demand.

Here are ​more details:

• U.S. electric utilities are racing to capture record electricity demand, led by the power-hungry data centers needed to expand artificial intelligence, ⁠with Dominion's service territory covering the biggest global hub of server warehouses in Northern Virginia.

• Dominion's ​quarterly revenue rose to $4.48 billion, from $3.81 billion a year ago, beating analysts' average estimate of $4.04 billion, according to data compiled ​by LSEG.

• Adjusted operating earnings from its ‌South Carolina segment fell about 3.7% to $105 million in the quarter ended June 30.

• The Richmond, Virginia-based company posted ⁠adjusted earnings of 79 cents per share, topping expectations of 68 cents per share.

• Dominion said its Virginia segment had contracted nearly 53.8 gigawatts (GW) of data center ⁠capacity as of July, up 5.3 GW from December.

• In May, Dominion and NextEra ​Energy announced a $66.8 billion merger deal that will form one of the world's largest electric utilities. The companies will now face a series of regulatory hurdles to close ‌the deal.

• Dominion has filed various state and federal regulatory applications, with some key evidentiary hearings beginning on November ‌17, the company said.

• Dominion supplies electricity to 3.6 million customers across Virginia, ⁠North Carolina and South Carolina, ‌and natural gas to ​500,000 customers in South Carolina.

(Reporting by Sumit Saha in Bengaluru and Laila Kearney in New York; Editing by Diti Pujara, ‌Kirsten Donovan)

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