Data Centers Drive Up Capital Spending Plans at Alliant

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Written by John Egan for IIR News Intelligence (Sugar Land, Texas)

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Summary

Alliant Energy Corporation plans to invest about US$15.9 billion in its electric and gas utility operations in the Upper Midwest over the 2027-2030 period, driven in part by data centers that are under construction or planned.

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Data Centers: Under-Construction and Projected

Alliant Energy Corporation, corporate parent to two Upper Midwest electric and gas utilities, has contracted with five large data centers totaling 3,400 megawatts (MW) of new electric demand, a 60% increase from that customer sector. All five facilities are expected to be running by 2031, company officials told investors October 30. For that reason, among others, the company has expanded its capital expenditure (capex) program by 19%, to US$15.9 billion over the 2027-2030 period.

That's about 75% more than the company planned to invest over four years as recently as 2023, when it planned to invest about US$9.1 billion in its two-state system over the 2024-2027 period.

Alliant's Interstate Power and Light Company (IPL) unit provides electricity to about 505,000 customers in Iowa. Its gas utility provides service to an estimated 230,000 customers in the Hawkeye State. Overall, IPL serves about 75% of the geographic footprint of the state of Iowa.

The company's Wisconsin subsidiary, Wisconsin Power and Light Company, delivers electricity to slightly over half a million customers in that state. Another 205,000 customers receive natural gas service from the utility. WPL's service area comprises about 40% of the Badger State.

Data centers, under construction and planned, are driving electric demand growth in both states. Company officials said the company's electricity costs in Iowa are below the national average. And despite the recent runup in local land costs, land still costs less in Iowa and Wisconsin compared to other Midwestern markets. That's music to the ears of Big Tech firms and data center developers, as data centers require large amounts of land and electricity.

Right now, three large data centers are under construction in Alliant's service area: two in Cedar Rapids, Iowa -- one by Alphabet parent Google and one by Quality Technology Services (QTS), a unit of Blackstone Group--while a third large project, developed by Meta Platforms Incorporated, is being built in Beaver Dam, Wisconsin.

A second Google complex, and a second QTS facility, are in the planning stage. Both were discussed on the October 30 earnings call.

Power contracts with all five facilities are in place. When complete, the five data centers will add a total about 3,400 megawatts (MW) of new electric demand. The facilities will push up electric demand growth from that sector 60% by 2031, which company officials said was an industry-leading pace.

Beyond that 3,400 MW of contracted data center load, Alliant executives told investors October 30, the company was in advanced discussion to add between 2,000 MW and 4,000 MW of new large electric load in the near future. As much as 1,000 MW of that projected demand could be finalized in the next six months, they predicted.

Industrial Info Resources is tracking plans to build a total of 138 data centers in Iowa and Wisconsin valued at about US$112 billion. Not all of those data centers will be built in Alliant's service areas in those states, but the numbers show a data center gold rush is under way in the Upper Midwest. A list of those projects can be viewed here.

Alliant's operating utilities have worked to make these computer campuses a good community partner. It has created a community betterment fund, drawn from data center fees, that will pay for raises for teachers, firefighters and police as well as water-front improvements, energy efficiency upgrades and other community amenities. Also, some of the computer campuses will use a water-free cooling system, reducing their impact on water resources. And Alliant has pledged that data centers will pay their own way, relieving homeowners of the potential burden of higher electricity prices.

By the Numbers

• US$15.9: The amount, in billions of dollars, that Alliant Energy plans to invest in its Iowa and Wisconsin service areas over the 2027-2030 period.
• 19%: The increase in planned spend over last year's four-year capital plan.
• 3,400: The amount of new electric demand, in MW, that five data centers, which are either under construction or planned, will add to the utility's load.
• US5.1: The amount, in billions of dollars, that the U.S. Department of Energy has agreed to lend Alliant to expand or build new electric generation.

Alliant's Planned Projects

By category of project, over the 2027-2030 period Alliant executives told investors they planned to add:

• US$6.8 billion of thermal generation and liquefied natural gas (LNG) facilities
• US$5.1 billion of renewables and energy storage
• US$2.3 billion in new electric distribution infrastructure
• US$1.1 billion of "other" projects, including transmission investments in its American Transmission Company subsidiary
• US$600 million in its gas utility distribution infrastructure

Industrial Info Resources is tracking about 31 Alliant capital projects valued at approximately US$8 billion. Readers can view this list here.

Alliant's current-year capex is about US$2.9 billion, most of which has been directed to thermal generation and LNG facilities. Going forward, by year, Alliant officials said their capital outlays will average:

• US$4.3 billion in 2027
• US$4.7 billion in 2028
• US$4.3 billion in 2029
• US$2.6 billion in 2030

Thermal generation and LNG facilities will account for approximately US$6.8 billion of the company's planned US$15.9 billion capital spend over the next four years. Renewable generation and energy storage is slated to get about US$5.1 billion in capital funding over the 2027-2030 period.

A US$5.1 billion conditional loan from the U.S. Department of Energy will support Alliant's capital plans. The loan will allow to Alliant Energy will add more than 2,600 megawatts (MW) of new or upgraded power generation capacity in Iowa and Wisconsin. For more on that, see October 30, 2026, article - Alliant Energy Getting $5.1 Billion DOE Loan for Power Projects.

Key Takeaways

• Alliant Energy has increased its four-year capital spending plans to US$15.9 billion, a 19% increase over last year's projection.
• Data centers and other large energy loads are a big reason for the jump in planned spending.
• Five data centers under construction or planned in Alliant's service area in Iowa and Wisconsin have contracted for a total of 3,400 MW of electric load.
• The data centers have agreed to pay into a community betterment fund as well as use water-free cooling.
• These five data center facilities will boost Alliant's data center load by an estimated 60% by 2031.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).