Alliant Energy combines a defensive regulated monopoly with 3.4 GW of contracted data-center demand, supporting measured upside despite rate and execution risks.
Overview
Alliant Energy (LNT) is a regulated Midwestern utility holding company operating Interstate Power and Light in Iowa and Wisconsin Power and Light in Wisconsin. It serves approximately one million electric customers and more than 430,000 natural-gas customers, with regulated utility operations generating over 95% of consolidated earnings. Its defensive monopoly model is increasingly complemented by structural electricity-demand growth from hyperscale data centers, supported by 3.4 GW of contracted demand and a projected 60% peak-load increase by 2031. **The core growth engine is the $13.5 billion 2026–2029 capital program**, which expands rate base through renewable generation, storage, transmission, and firm gas capacity. Q2 2026 GAAP EPS of $0.65 exceeded the $0.56 BMO estimate and $0.58 median consensus, while revenue of $971 million rose 1.04% year over year but missed broader Wall Street expectations. Management reaffirmed 2026 ongoing EPS guidance of $3.36–$3.46 and raised retail-sales-growth guidance to 2%–3%. At a $70.60 baseline, the probability-weighted five-year target is $79.74, with a 3.02% dividend yield and potential upside from faster data-center load growth. Near-term catalysts include project energization, rate-base additions, and data-center load ramping, while rates, regulatory outcomes, and customer concentration remain key risks.