Dominion Energy's Growth Amid Rising Power Demand
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 28 2026
0mins
Should l Buy D?
Source: NASDAQ.COM
Dominion Energy's stock rose 3.01% and reached a 52-week high amid a challenging market environment where the Nasdaq-100 and S&P 500 are down.
The company's strong performance is attributed to its crucial role in supplying power to over 35% of the world's hyperscale data centers, which is driving sustained revenue growth. CEO Robert Blue highlighted the ongoing demand for additional power supply from data center customers, with 450 data centers already connected. Furthermore, Dominion Energy reported a 10.2% year-over-year increase in operating earnings, indicating robust profitability and a projected annualized EPS growth of 5% to 7% through 2029, making it attractive for investors.
As the demand for electricity continues to surge, particularly from data centers, Dominion Energy is well-positioned to capitalize on this trend, enhancing its market competitiveness and appealing to income-focused investors with a current dividend yield of 4.4%.
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Analyst Views on D
Wall Street analysts forecast D stock price to rise
12 Analyst Rating
2 Buy
9 Hold
1 Sell
Hold
Current: 62.420
Low
59.00
Averages
64.36
High
70.00
Current: 62.420
Low
59.00
Averages
64.36
High
70.00
About D
Dominion Energy, Inc. provides regulated electricity service to 3.6 million homes and businesses in Virginia, North Carolina and South Carolina, and regulated natural gas service to 500,000 customers in South Carolina. It develops and operates regulated offshore wind and solar power and is the producer of carbon-free electricity in New England. Its Dominion Energy Virginia segment includes Virginia Power’s regulated electric transmission, distribution and generation operations, which serve homes and businesses in Virginia and North Carolina. Its Dominion Energy South Carolina segment includes DESC’s generation, transmission and distribution of electricity to customers in the central, southern and southwestern portions of South Carolina and the distribution of natural gas to residential, commercial and industrial customers in South Carolina. Its Contracted Energy segment includes nonregulated long-term contracted renewable electric generation fleet and renewable natural gas facilities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Global Electricity Consumption Rises 3% Driven by EV Demand
- Electricity Consumption Growth: According to the International Energy Agency, global electricity consumption rose by 3% last year, driven by surging demand from electric vehicles and data centers, which grew by 38% and 17%, respectively, indicating strong momentum in renewable energy and electric transportation.
- U.S. Market Performance: In advanced economies, electricity demand in the U.S. expanded by 1.6% year-over-year, with data centers accounting for approximately 50% of total electricity demand growth, highlighting the profound impact of digital transformation on energy needs.
- Future Projections: The IEA's report forecasts that by 2030, data centers will account for half of electricity demand growth in the U.S., reflecting structural changes and investment opportunities in the future electricity market.
- Power Producers Performance: Among power producers, PG&E Corporation (PCG) is rated as a Strong Buy with a year-to-date increase of 7.41%, while other companies like American Electric Power Company (AEP) and Duke Energy Corporation (DUK) also performed well, with increases of 15.91% and 9.23%, respectively.
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Surge in Electricity Demand Benefits Utilities
- Surge in Demand: The significant increase in electricity demand is poised to greatly benefit utilities like Dominion Energy and NextEra Energy, with Dominion's 4.2% dividend yield notably surpassing NextEra's 2.7% and the average utility yield of 2.6%.
- Dominion's Challenges: Despite its attractive yield, Dominion Energy has a history of failing to meet its own targets, having once promised 10% dividend growth but subsequently cut dividends after selling pipelines and natural gas operations, leading investors to adopt a cautious outlook on its future growth.
- NextEra's Stability: In contrast, NextEra Energy demonstrates strong execution, consistently delivering on its 10% dividend growth promises, supported by a large regulated utility base in Florida and a robust renewable energy business that drives its growth.
- Importance of Trust: For dividend investors relying on payouts for living expenses, trust is crucial; while Dominion's higher yield is appealing, its failure to meet commitments has eroded investor confidence, making NextEra's stable performance a more reliable choice despite its lower yield.
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Comparative Analysis of Dominion Energy and NextEra Energy
- Electricity Demand Surge: Driven by investments in artificial intelligence, electricity demand has surged, benefiting utilities like Dominion Energy and NextEra Energy, particularly with Dominion's strong position in one of the world's largest data center markets.
- Dividend Yield Comparison: Dominion Energy boasts a dividend yield of 4.2%, significantly higher than NextEra Energy's 2.7% and the average utility yield of 2.6%; however, its historical failure to meet dividend growth expectations has led to diminished investor confidence.
- Execution Performance Divergence: NextEra Energy demonstrates superior execution, consistently delivering on its promised 10% dividend growth, while Dominion Energy has cut dividends due to the sale of pipelines and natural gas operations, resulting in a loss of trust among investors.
- Future Growth Outlook: Although NextEra Energy's dividend growth is expected to slow from 10% in 2026 to 6% in 2027 and 2028, this rate remains above historical inflation, indicating a stable business foundation and credible management guidance.
See More
Electricity Demand Surge Benefits Utilities
- Dividend Yield Comparison: Dominion Energy boasts a 4.2% dividend yield, significantly higher than NextEra Energy's 2.7% and the average utility yield of 2.6%, indicating Dominion's advantage in attracting income-seeking investors.
- Execution History Divergence: Despite Dominion Energy's past promises of 10% dividend growth, it has failed to deliver due to divestitures of pipelines and natural gas operations, leading to a cautious investor sentiment regarding its future growth commitments and impacting market confidence.
- NextEra's Stable Growth: Known for its reliable execution, NextEra Energy typically fulfills its 10% dividend growth commitments, supported by a robust renewable energy business, although growth is expected to slow to 6% in 2027 and 2028.
- Importance of Investor Trust: Trust is crucial for investors relying on dividends for living expenses, and NextEra Energy's historical performance positions it as a more reliable choice, despite its lower yield compared to Dominion Energy.
See More
Maine Set to Enact First Statewide Data Center Construction Ban
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- Energy Price Concerns: The measure aims to prevent data centers from driving up electricity prices for Maine residents, facing strong opposition from tech groups and businesses who argue that even a temporary halt in construction will set the state back in competition.
- Political Implications: While Maine has not attracted major data center projects, thousands of new projects are underway across the U.S., making the potential impacts of data centers a focal point in political debates, especially amid the AI boom.
- Regulatory Process Controversy: The Maine Chamber of Commerce president argues that the existing regulatory framework is sufficient to ensure new data centers do not negatively impact electricity costs or the environment, asserting that a moratorium is an inappropriate approach that could hinder the state's economic recovery.
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Enbridge Energy Stock Rallies 30% Amid Growth and Expansion
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- Revenue Growth: The company expects its adjusted EBITDA to grow at a 9.3% CAGR from $14 billion CAD to $19.95 billion CAD from 2021 to 2025, reflecting sustained profitability and market demand.
- Cash Flow Improvement: Enbridge's distributable cash flow (DCF) increased from $10.04 billion CAD to $12.45 billion CAD, with DCF per share growing at a 3.6% CAGR to $5.71 CAD, ensuring its ability to maintain stable dividend payments.
- Strategic Expansion: Enbridge plans to raise its adjusted EBITDA to $20.2-$20.8 billion CAD by 2026 and further solidify its market position through $8 billion CAD in new projects, demonstrating confidence in future growth.
See More
Global Electricity Consumption Rises 3% Driven by EV Demand
- Electricity Consumption Growth: According to the International Energy Agency, global electricity consumption rose by 3% last year, driven by surging demand from electric vehicles and data centers, which grew by 38% and 17%, respectively, indicating strong momentum in renewable energy and electric transportation.
- U.S. Market Performance: In advanced economies, electricity demand in the U.S. expanded by 1.6% year-over-year, with data centers accounting for approximately 50% of total electricity demand growth, highlighting the profound impact of digital transformation on energy needs.
- Future Projections: The IEA's report forecasts that by 2030, data centers will account for half of electricity demand growth in the U.S., reflecting structural changes and investment opportunities in the future electricity market.
- Power Producers Performance: Among power producers, PG&E Corporation (PCG) is rated as a Strong Buy with a year-to-date increase of 7.41%, while other companies like American Electric Power Company (AEP) and Duke Energy Corporation (DUK) also performed well, with increases of 15.91% and 9.23%, respectively.
See More
Surge in Electricity Demand Benefits Utilities
- Surge in Demand: The significant increase in electricity demand is poised to greatly benefit utilities like Dominion Energy and NextEra Energy, with Dominion's 4.2% dividend yield notably surpassing NextEra's 2.7% and the average utility yield of 2.6%.
- Dominion's Challenges: Despite its attractive yield, Dominion Energy has a history of failing to meet its own targets, having once promised 10% dividend growth but subsequently cut dividends after selling pipelines and natural gas operations, leading investors to adopt a cautious outlook on its future growth.
- NextEra's Stability: In contrast, NextEra Energy demonstrates strong execution, consistently delivering on its 10% dividend growth promises, supported by a large regulated utility base in Florida and a robust renewable energy business that drives its growth.
- Importance of Trust: For dividend investors relying on payouts for living expenses, trust is crucial; while Dominion's higher yield is appealing, its failure to meet commitments has eroded investor confidence, making NextEra's stable performance a more reliable choice despite its lower yield.
See More
Comparative Analysis of Dominion Energy and NextEra Energy
- Electricity Demand Surge: Driven by investments in artificial intelligence, electricity demand has surged, benefiting utilities like Dominion Energy and NextEra Energy, particularly with Dominion's strong position in one of the world's largest data center markets.
- Dividend Yield Comparison: Dominion Energy boasts a dividend yield of 4.2%, significantly higher than NextEra Energy's 2.7% and the average utility yield of 2.6%; however, its historical failure to meet dividend growth expectations has led to diminished investor confidence.
- Execution Performance Divergence: NextEra Energy demonstrates superior execution, consistently delivering on its promised 10% dividend growth, while Dominion Energy has cut dividends due to the sale of pipelines and natural gas operations, resulting in a loss of trust among investors.
- Future Growth Outlook: Although NextEra Energy's dividend growth is expected to slow from 10% in 2026 to 6% in 2027 and 2028, this rate remains above historical inflation, indicating a stable business foundation and credible management guidance.
See More
Electricity Demand Surge Benefits Utilities
- Dividend Yield Comparison: Dominion Energy boasts a 4.2% dividend yield, significantly higher than NextEra Energy's 2.7% and the average utility yield of 2.6%, indicating Dominion's advantage in attracting income-seeking investors.
- Execution History Divergence: Despite Dominion Energy's past promises of 10% dividend growth, it has failed to deliver due to divestitures of pipelines and natural gas operations, leading to a cautious investor sentiment regarding its future growth commitments and impacting market confidence.
- NextEra's Stable Growth: Known for its reliable execution, NextEra Energy typically fulfills its 10% dividend growth commitments, supported by a robust renewable energy business, although growth is expected to slow to 6% in 2027 and 2028.
- Importance of Investor Trust: Trust is crucial for investors relying on dividends for living expenses, and NextEra Energy's historical performance positions it as a more reliable choice, despite its lower yield compared to Dominion Energy.
See More
Maine Set to Enact First Statewide Data Center Construction Ban
- Data Center Construction Ban: Maine lawmakers have approved a bill to prohibit data center construction until November 2027, a move that could influence other states to adopt similar measures and hinder the rapidly growing industry.
- Energy Price Concerns: The measure aims to prevent data centers from driving up electricity prices for Maine residents, facing strong opposition from tech groups and businesses who argue that even a temporary halt in construction will set the state back in competition.
- Political Implications: While Maine has not attracted major data center projects, thousands of new projects are underway across the U.S., making the potential impacts of data centers a focal point in political debates, especially amid the AI boom.
- Regulatory Process Controversy: The Maine Chamber of Commerce president argues that the existing regulatory framework is sufficient to ensure new data centers do not negatively impact electricity costs or the environment, asserting that a moratorium is an inappropriate approach that could hinder the state's economic recovery.
See More
Enbridge Energy Stock Rallies 30% Amid Growth and Expansion
- Stock Performance: Enbridge's stock has rallied over 30% in the past 12 months, currently hovering near its all-time high, indicating strong market performance and investor confidence.
- Revenue Growth: The company expects its adjusted EBITDA to grow at a 9.3% CAGR from $14 billion CAD to $19.95 billion CAD from 2021 to 2025, reflecting sustained profitability and market demand.
- Cash Flow Improvement: Enbridge's distributable cash flow (DCF) increased from $10.04 billion CAD to $12.45 billion CAD, with DCF per share growing at a 3.6% CAGR to $5.71 CAD, ensuring its ability to maintain stable dividend payments.
- Strategic Expansion: Enbridge plans to raise its adjusted EBITDA to $20.2-$20.8 billion CAD by 2026 and further solidify its market position through $8 billion CAD in new projects, demonstrating confidence in future growth.
See More
