Solmar Insights
FirstEnergy posted a 50% jump in contracted data center load in the second quarter of 2026, now reaching 6.4 GW and driving aggressive new generation plans in its service areas. The utility is pursuing a $2.7 billion investment for new gas and solar generation in West Virginia, primarily to support a major data center customer, as data center pipelines and associated infrastructure needs escalate.
Key figures
6.4 GW contracted data center load by 2035
50% quarter-over-quarter jump in data center contracts
$2.7 billion generation investment planned, mostly for data centers
4.1 GW West Virginia data center pipeline, up 155% in Q2
Contracted demand surges
FirstEnergy executives reported a rapid expansion in contracted data center load, increasing by 50% from the previous quarter to 6.4 GW as of July 2026, with expectations of another 1.5 GW in signed agreements in the near term. The bulk of these contracts are intended for hyperscale and AI compute operations, which require substantial and reliable baseload electricity. Brian Tierney, FirstEnergy chair, outlined the acceleration during the company’s second-quarter earnings call, positioning data center service as core to the company’s long-term growth.
This surge reflects the wider trend of digital infrastructure growth in FirstEnergy’s territories, particularly in Ohio and West Virginia. The company’s total pipeline of potential data center customers climbed 30% quarter-over-quarter to 24.8 GW, underscoring sustained interest from large-scale compute companies seeking credible paths to power access by the end of the decade.
Importantly, FirstEnergy’s current data center load and contracts represent nearly 70% of its July system peak load of 34.8 GW. This comes as other U.S. utilities also experience mounting interest from data center, hyperscale cloud, and AI operators, raising system planning stakes for regional grid operators and state regulators alike.
New generation projects in West Virginia
To meet anticipated digital load needs, FirstEnergy subsidiaries Monongahela Power and Potomac Edison Co. have proposed the Maidsville Energy Center for construction in West Virginia. This major build would comprise a 1,200 MW gas-fired power plant along with three solar projects totaling 70 MW. All are designed to provide dedicated supply to a planned data center, aligning long-term utility returns to hyperscale demand.
Total capital costs for these projects are projected at $2.7 billion, broken down as $2.5 billion for the new gas peaker and $182 million for the solar installations. These generation assets are expected to come online by the end of 2031, subject to regulatory approvals and final investment decisions. The data center focus echoes a growing pattern in U.S. states competing for AI cluster and hyperscale deployments.
FirstEnergy’s West Virginia data center pipeline alone jumped 155% to 4.1 GW in Q2, up from 1.6 GW in Q1. This rapid ramp substantiates the urgent demand pull, giving further impetus for greenfield power project development and new infrastructure investments across key Appalachian and Midwest geographies.
Cost recovery and customer impacts
FirstEnergy plans to recover the costs for these major capital investments through retail rates, primarily by proposing a surcharge for Mon Power’s residential and business customers. As detailed in the company’s application for the Maidsville Energy Center, the proposed surcharge would increase residential rates by about 2.3% on average, spreading the capital burden over the broader rate base rather than relying solely on direct power-purchase agreements with the data center operator.
This approach is increasingly common among regulated monopoly utilities seeking certainty and timeliness for new generation investment. In regulatory filings, FirstEnergy expressed confidence that once operational, the new assets would deliver “large, anticipated revenues” from the anchor data center tenant, offsetting some of the long-term risk posed to non-data-center ratepayers.
The model does raise questions about equitable cost allocation and regulatory acceptance, particularly as digital infrastructure demand reshapes local power economies. West Virginia’s Public Service Commission will weigh these issues as it reviews the certificate of public convenience and necessity for the project.
Transmission and system implications
In addition to generation, FirstEnergy is prioritizing transmission upgrades to strengthen grid reliability in anticipation of large, steady-state digital loads. The company’s transmission ratebase increased 14% year-over-year in Q2, up from 13% in the prior quarter, reflecting sustained investment in backbone assets to serve new and upcoming demand nodes.
For grid operators and ISO/RTO planners, this points to the growing pressure data center projects exert on the interconnection queue, transmission siting timelines, and local infrastructure planning. A single hyperscale contract can materialize as hundreds of megawatts in concentrated draw, necessitating careful balancing of local system adequacy and broader grid stability.
Meanwhile, the pace and magnitude of load growth are prompting utilities like FirstEnergy to adopt more proactive stances on asset investment and contracting, helping ensure they can credibly serve the expanding digital sector while maintaining legacy customer reliability obligations.
Financial and regulatory dynamics
FirstEnergy’s Q2 results showed 7.5% year-over-year growth in net income to $288 million and a 0.7% increase in electric sales (34.7 million MWh for the quarter). The strong financial performance is intertwined with the fresh wave of data center demand and the company’s ability to secure rate recovery for new investments.
With the White House’s voluntary Ratepayer Protection Pledge now signed, FirstEnergy joins other major utilities publicly committing to transparency and fairness in rate design as digital infrastructure stress-tests retail ratepayers. The regulatory landscape is shifting toward greater scrutiny as state commissions and consumer advocates evaluate how digital load is changing the utility business model and who shoulders associated risks and rewards.
Developers, investors, and system planners will be watching closely as FirstEnergy advances its West Virginia build, with the potential for this model to template further digital-infrastructure-driven utility investment across regulated states.
What this means for buyers
FirstEnergy’s scale-up in data center commitments signals both near-term opportunity and long-term structural changes for power buyers and developers targeting hyperscale and AI compute installations. The use of regulated surcharges and new-build generation signifies a growing willingness by utilities to allocate risk across the broader rate base, but also puts regulatory scrutiny on the terms and community impacts. Buyers should closely monitor regulatory proceedings, pricing signals, and grid interconnection timelines as West Virginia and other FirstEnergy territories become active digital infrastructure destinations.
