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Released November 06, 2025 | SUGAR LAND
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Written by Danny Levin, Deputy Editor for Industrial Info Resources (Sugar Land, Texas)
"Today, Xcel Energy unveiled our updated five-year infrastructure investment plan to serve increased energy demand from our communities, continue progress towards carbon reduction goals for our electric system and make needed investments to strengthen our transmission and distribution systems," said Bob Frenzel, chief executive officer of Xcel Energy, in a third-quarter earnings-related press release.
Xcel reported third-quarter 2025 net earnings of $524 million on generally accepted accounting principles (GAAP), down 23% from the prior-year quarter on higher depreciation, interest charges and operation and maintenance (O&M) expenses, partially offset by improved recovery from infrastructure investments. Xcel aims for the plan to deliver about 7,500 megawatts (MW) of renewable generation (solar and wind), 3,000 MW of natural gas generation, 1,900 MW of energy storage and 1,500 miles of new transmission line.
The breakdown of the $60 billion capital plan is as follows:
Also on the call, Chief Financial Officer Brian Van Abel said there's an "additional pipeline of investments" to the $60 billion plan, "specifically from our recent RFPs [request for proposal] across jurisdictions, incremental data center load, and transmission projects from future MISO [Midcontinent Independent System Operator] and SPP [Southwest Power Pool] tranches."
Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can view a full list of Xcel's projects.
T&D efforts include the Colorado Power Pathway project, which is designed to provide rural Colorado with better access to the power grid. Five segments (totaling 560 miles) of the massive transmission line are under construction. Subscribers can view the project reports.
After receiving approval from the Minnesota Public Utilities Commission in April, Xcel expects it will begin construction next year on its roughly 175-mile Minnesota Energy Connection transmission line, which will link new energy sources to the Upper Midwest grid. See a full list of related project reports.
Xcel expects up to 4,000 megawatts of new renewable energy, such as wind and solar, could connect to the Minnesota Energy Connection line over the coming years.
The One Big Beautiful Bill Act ends federal tax credits for solar and wind energy development much sooner than originally planned, although projects in advanced stages of development that begin construction by July 2026 will be eligible. This has led to the expectation that many projects will accelerate into construction by that time and come online by 2030.
Construction of Xcel's Singing Grass windfarm in Colorado, with its 603 MW of capacity, kicked off in mid-2025 and is expected to enter service in late 2026.
Van Abel said the Public Service Commission of Wisconsin "verbally approved" Xcel's application to acquire the Elk Creek solar-plus-storage project in Wisconsin. Elk Creek is designed to feature a roughly 300-MW solar array with a 76.6-MW battery energy storage system (BESS). He did not provide any further updates regarding the planned project. Industrial Info is currently tracking the project with a low probability of kicking off in 2027.
Other projects under construction include a 72-MW solar array and an accompanying 36-MW battery energy storage system (BESS) at the site of the Cunningham natural gas-fired plant in Hobbs, New Mexico. The project is expected to wrap up early next year. The addition of 196 MW of further solar generation could be added to the site after the first phase of construction is complete.
Subscribers can read more information on the Singing Grass, Elk Creek and Cunningham projects.
As part of its earnings results, Xcel said all renewable and storage projects in the $60 billion base capital plan are safe-harbored to secure tax credits.
The orders come as a shortage of gas turbines threatens to limit the buildout of gas-fired generation across the U.S. For more information, see September 15, 2025, article - Will Turbine Shortage Blunt Drive for New-Build Gas-Fired Generation?.
Industrial Info is tracking $3.1 billion worth of natural gas-generation projects from Xcel.
This includes one potential project in Texas, near Seminole in Gaines County, which is covered within the Southwest Power Pool grid. Xcel has plans to build a 1,100-MW natural gas-fired peaking station using five 220-MW simple-cycle units. Construction could begin next year, putting the facility on track to be completed by the end of 2027. Subscribers can view the project report.
Earlier this year, Xcel said it aimed to construct more than 5,100 MW of new power generation in Texas and New Mexico. For more information see Industrial Info's July 22, 2025, article - Xcel Energy Plans Power Buildout in Texas, New Mexico.
"Moving to data centers, we remain on track to contract the remainder of our original two-gigawatt base plan by the end of the year," Van Abel said. "In addition, we have updated our total base plan to include approximately three gigawatts of data center capacity. Additional projects included in the base case are considered high probability and expected to be contracted by 2026."
New data center load accounts for about 60% of the anticipated growth, he said, with another 30% coming from the electrification of the oil and gas sector, and the remaining 10% from residential load growth and electrification.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active and proposed projects from Xcel Energy.
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) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Summary
Xcel Energy's new five-year, $60 billion capital plan includes investments in transmission and distribution (T&D), renewably sourced generation and natural gas.Xcel Energy's $60 Billion Capital Plan
Xcel Energy Incorporated (Minneapolis, Minnesota) last week boosted its five-year (2026-2030) capital spending plan to $60 billion from $45 billion, and the spend includes significant investments in transmission and distribution (T&D), renewably sourced generation and natural gas."Today, Xcel Energy unveiled our updated five-year infrastructure investment plan to serve increased energy demand from our communities, continue progress towards carbon reduction goals for our electric system and make needed investments to strengthen our transmission and distribution systems," said Bob Frenzel, chief executive officer of Xcel Energy, in a third-quarter earnings-related press release.
Xcel reported third-quarter 2025 net earnings of $524 million on generally accepted accounting principles (GAAP), down 23% from the prior-year quarter on higher depreciation, interest charges and operation and maintenance (O&M) expenses, partially offset by improved recovery from infrastructure investments. Xcel aims for the plan to deliver about 7,500 megawatts (MW) of renewable generation (solar and wind), 3,000 MW of natural gas generation, 1,900 MW of energy storage and 1,500 miles of new transmission line.
The breakdown of the $60 billion capital plan is as follows:
- $23.4 billion (39%): electric generation ($13.9 billion for renewables and $9.5 billion for other sources, including natural gas)
- $15.4 billion (26%): electric transmission
- $13.9 billion (23%): electric distribution
- $3.7 billion (6%): natural gas infrastructure
- $3.7 billion (6%): other
Also on the call, Chief Financial Officer Brian Van Abel said there's an "additional pipeline of investments" to the $60 billion plan, "specifically from our recent RFPs [request for proposal] across jurisdictions, incremental data center load, and transmission projects from future MISO [Midcontinent Independent System Operator] and SPP [Southwest Power Pool] tranches."
Xcel's Transmission and Distribution Efforts
Industrial Info is tracking $20 billion worth of active and proposed projects from Xcel, with the bulk of the total investment--nearly $11 billion--attributed to T&D projects across its service territory: Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas and Wisconsin.Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can view a full list of Xcel's projects.
T&D efforts include the Colorado Power Pathway project, which is designed to provide rural Colorado with better access to the power grid. Five segments (totaling 560 miles) of the massive transmission line are under construction. Subscribers can view the project reports.
After receiving approval from the Minnesota Public Utilities Commission in April, Xcel expects it will begin construction next year on its roughly 175-mile Minnesota Energy Connection transmission line, which will link new energy sources to the Upper Midwest grid. See a full list of related project reports.
Xcel expects up to 4,000 megawatts of new renewable energy, such as wind and solar, could connect to the Minnesota Energy Connection line over the coming years.
Renewable Generation
"We sit in one of the most geographically attractive areas for both wind and solar assets," Frenzel said on the call. "And so we see real customer benefits from continuing down a trend of investing and taking advantage of those natural resources, particularly while tax credits help to make them affordable for our customers."The One Big Beautiful Bill Act ends federal tax credits for solar and wind energy development much sooner than originally planned, although projects in advanced stages of development that begin construction by July 2026 will be eligible. This has led to the expectation that many projects will accelerate into construction by that time and come online by 2030.
Construction of Xcel's Singing Grass windfarm in Colorado, with its 603 MW of capacity, kicked off in mid-2025 and is expected to enter service in late 2026.
Van Abel said the Public Service Commission of Wisconsin "verbally approved" Xcel's application to acquire the Elk Creek solar-plus-storage project in Wisconsin. Elk Creek is designed to feature a roughly 300-MW solar array with a 76.6-MW battery energy storage system (BESS). He did not provide any further updates regarding the planned project. Industrial Info is currently tracking the project with a low probability of kicking off in 2027.
Other projects under construction include a 72-MW solar array and an accompanying 36-MW battery energy storage system (BESS) at the site of the Cunningham natural gas-fired plant in Hobbs, New Mexico. The project is expected to wrap up early next year. The addition of 196 MW of further solar generation could be added to the site after the first phase of construction is complete.
Subscribers can read more information on the Singing Grass, Elk Creek and Cunningham projects.
As part of its earnings results, Xcel said all renewable and storage projects in the $60 billion base capital plan are safe-harbored to secure tax credits.
Natural Gas
Frenzel said 19 natural gas combustion turbines had been ordered, which will provide more than 4 gigawatts (GW) of natural gas generation.The orders come as a shortage of gas turbines threatens to limit the buildout of gas-fired generation across the U.S. For more information, see September 15, 2025, article - Will Turbine Shortage Blunt Drive for New-Build Gas-Fired Generation?.
Industrial Info is tracking $3.1 billion worth of natural gas-generation projects from Xcel.
This includes one potential project in Texas, near Seminole in Gaines County, which is covered within the Southwest Power Pool grid. Xcel has plans to build a 1,100-MW natural gas-fired peaking station using five 220-MW simple-cycle units. Construction could begin next year, putting the facility on track to be completed by the end of 2027. Subscribers can view the project report.
Earlier this year, Xcel said it aimed to construct more than 5,100 MW of new power generation in Texas and New Mexico. For more information see Industrial Info's July 22, 2025, article - Xcel Energy Plans Power Buildout in Texas, New Mexico.
Data Centers will Drive Xcel's Sales Growth
Xcel expects retail sales to grow 5% through 2030 (over the course of the capital plan), buoyed by data center capacity."Moving to data centers, we remain on track to contract the remainder of our original two-gigawatt base plan by the end of the year," Van Abel said. "In addition, we have updated our total base plan to include approximately three gigawatts of data center capacity. Additional projects included in the base case are considered high probability and expected to be contracted by 2026."
New data center load accounts for about 60% of the anticipated growth, he said, with another 30% coming from the electrification of the oil and gas sector, and the remaining 10% from residential load growth and electrification.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active and proposed projects from Xcel Energy.
Key Takeaways
- Xcel boosted its five-year (2026-2030) capital spending plan to $60 billion
- Xcel's five-year capital plan includes investment in transmission and distribution, as well as renewable and natural gas generation
- Company expects 5% retail sales growth through 2030, highlighted by data center load
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) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
