PPL projects 6% to 8% annual EPS growth through at least 2029 as signed Pennsylvania data center agreements reach 32 GW (NYSE:PPL)

PPL Corporation has signaled robust long-term earnings visibility through 2029, projecting 6%–8% annual EPS growth anchored by accelerating data center infrastructure deployment. The 32 GW of signed agreements represents a material shift in the utility's growth profile, transitioning from traditional rate-base expansion toward high-margin, contracted power supply arrangements. This visibility extends beyond typical regulatory cycles and positions the company as a beneficiary of AI-driven electricity demand.

The $23 billion capital expenditure program underscores management's conviction in infrastructure monetization and grid modernization. By locking in long-term data center contracts, PPL mitigates regulatory uncertainty while securing durable cash flows. The reaffirmed 2026 EPS guidance ($1.90–$1.98) demonstrates financial discipline, though the forward growth cadence suggests margin expansion rather than mere volume growth—a qualitatively different earnings driver than legacy utility businesses.

Rate-case timing and regulatory outcomes remain execution risks, yet the data center thesis decouples a portion of growth from traditional commission rate-setting battles. Utility investors have historically demanded yield and stability; PPL's dual-engine model (regulated utilities plus contracted capacity) may attract both income and growth-oriented capital, potentially supporting multiple expansion.

Sector implication: This signals renewed investor appetite for utilities positioned at the intersection of energy infrastructure and digital capex. Peers with similar data center exposure may face higher valuation expectations, while traditional rate-dependent utilities risk relative underperformance unless they pursue comparable infrastructure partnerships.