This report does not constitute a rating action. Hyperscaler expansion is boosting electricity demand in the U.S. after decades of largely flat demand. The U.S. Energy Information Administration projects that electric generating capacity will grow at a compound annual growth rate exceeding 5% through 2028. This surge presents an opportunity for the industry, as increased load growth can help mitigate regulatory lag and support financial metrics and credit quality. In response to increasing data center demand, utilities have worked with regulators to develop and implement new tariffs specifically designed for large-load customers. While these tariffs may differ from individual contract terms, they offer transparency and are publicly accessible. Still, reliance on a single industry and a concentrated customer base introduces
