Morgan Stanley Updates NextEra Energy (NEE) Target on Load Growth and Data Center Demand

NextEra Energy, Inc. (NYSE:NEE) is included among the Dividend Kings and Aristocrats List: 32 Biggest Stocks.

On March 23, Morgan Stanley raised its price recommendation on NextEra Energy, Inc. (NYSE:NEE) to $110 from $106. It reiterated an Overweight rating on the shares. The firm said the change reflects updates to its coverage across regulated and diversified utilities and IPPs in North America. Utilities outperformed the S&P in February, which helped shape the firm’s view. Recent discussions across the sector have also been encouraging. Companies are pointing to growth opportunities, improving load trends, and new deals linked to data centers.

On March 23, Reuters reported that NextEra has secured land in Texas for a gas-fired power plant that will support a large data center campus tied to a US-Japan agreement, according to CEO John Ketchum. The company said last week that the administration of President Donald Trump approved the development of two large gas plants in Texas and Pennsylvania. Together, the projects are expected to total about 10 gigawatts and are aimed at meeting growing electricity demand from data centers.

Under the agreement, the $33 billion projects will be developed and operated by NextEra but jointly owned by the United States and Japan as part of a broader trade deal. Ketchum said the company has already secured land for the Texas facility, which is expected to have more than 5 GW of capacity. He shared the update while speaking at the CERAWeek conference in Houston. He also noted that land has not yet been acquired for the Pennsylvania site. Additional land and permits will be needed before moving forward there.

NextEra Energy, Inc. (NYSE:NEE) operates through its subsidiaries, including NextEra Energy Resources and NextEra Energy Transmission, along with Florida Power & Light Company.

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