Southern Co beats quarterly profit estimates as US power demand soars

U.S. utility Southern Co SO beat Wall Street estimates for third-quarter profit on Thursday, helped by surging demand for electricity from businesses.

Kilowatt-hour sales in the commercial segment rose 2.3% in the third quarter from a year earlier, while they grew 1.5% in the industrial segment.

Extreme heat during the summer months boosted usage of air conditioners and refrigerators at factories and offices, while businesses rushing to adopt artificial intelligence drove up demand for the power-hungry data centers essential to support the technology.

Within three years, data centers could consume as much as 12% of the country's output, nearly triple their current share.

Traditional electric utilities earned $1.92 billion in the quarter, up from $1.62 billion a year earlier

CEO Chris Womack said the results underscored "momentum around electric demand growth opportunities".

With 9 million customers, Southern Co ranks as the second-largest U.S. utility, serving the states of Alabama, Georgia, Illinois, Mississippi, Tennessee, and Virginia.

For the quarter, the company's operating revenue rose 7.5% to $7.82 billion.

The Atlanta, Georgia-based company posted an adjusted profit of $1.60 per share for the three months ended September 30, compared with analysts' estimates of $1.51 per share, according to data compiled by LSEG.