American Electric Power signs $78 billion five-year capital plan as big tech's $700 billion AI spending drives demand for grid infrastructure

In Q1 2026, American Electric Power (AEP) signed up 7 gigawatts of future load, bringing its total contracted load expected by 2030 to 63 gigawatts—up from 56 gigawatts one quarter earlier. Nearly 90% of that is from data centers operated by the same hyperscalers spending on AI infrastructure.

AEP raised its five-year capital plan to $78 billion, up from $72 billion a quarter earlier, focused on new transmission and generation. The company expects this investment to grow its rate base at nearly an 11% compound annual rate through 2030.

AEP's Q1 2026 revenue rose about 10% year over year to $6.0 billion, and operating earnings per share rose to $1.64 from $1.54 in Q1 2025. The company's large-load contracts could generate up to $16 billion in cost offsets over their life.

AEP is funding the plan through debt and equity, including a $2.6 billion common stock offering in May and about $7 billion in growth equity planned through 2030. As a regulated utility, AEP must obtain state regulator approval for rates and returns it earns.