Xcel Energy Signs Dual Deals With GE Vernova and NextEra to Support 6 GW Data Center Expansion
Published: 13 Feb 2026
Author: Precedence Research
Xcel has signed two strategic partnership agreements to meet the 6 GW power demands from the data center customers within its service territory. Announced in early February 2026, these partnerships will see the utility work with GE Vernova and Next Era Energy on power generation and delivery. Xcel has reserved five F-class gas turbines from GE as a part of this agreement. It has also obtained multiple gigawatts worth of wind power through future deals. These agreements would help address a major increase in loads from data centers and other customer facilities.
The second agreement of Xcel Energy is with NextEra energy. Xcel and NextEra entered into a memorandum of understanding to co-develop generation, storage and grid interconnection required to support large loads of energy. These alliances aim to enhance Xcel’s ability to serve new customers through early 2030s. They are poised to fulfill their aim of supporting 6 GW data center capacity by 2027. This is a reflection of booming demand for electricity by cloud providers, large-scale companies and AI-based data hubs.
Data center power use is skyrocketing in the U.S, analyst estimates indicate that grid demand from large computing centers will continue to rise until 2030 and beyond. This puts the power industry under immense pressure to build infrastructure to meet the power demands. According to Xcel Energy’s CEO, Bob Frenzel, reliable partners are the key to enhance its power generation grid. Energy service providers are diversifying their portfolios of energy production to cater to the energy demand from the technology sector. They are diversifying by investing more in wind, gas and storage-based technologies.
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