North American Utilities Weekly McKinsey Data Center Fireside on Deck; AGA 2026 Takeaways; AEE U/G to OW; X-Energy Initiation; News Flow; Comps; Utilities Outperform

Research evidence excerpt

North American Utilities Weekly McKinsey Data Center Fireside on Deck; AGA 2026 Takeaways; AEE U/G to OW; X-Energy Initiation; News Flow; Comps; Utilities Outperform

J P M O R G A N North America Equity Research

22 May 2026

North American Utilities Weekly

McKinsey Data Center Fireside on Deck; AGA 2026

Takeaways; AEE U/G to OW; X-Energy Initiation; News

Flow; Comps; Utilities Outperform

• Active debates in sentiment check. AEE, CNP, NI, and SRE stood out as Head of North America Power,

positive meetings at AGA, with a throughline of confidence in sustained Utilities, Midstream, LNG, and

growth, while many investors left their XEL meetings more confident in a CO Nuclear

settlement. Our conversations with investors on DUK spoke to concerns Jeremy Tonet, CFA AC

regarding NC legislation that would repeal sales tax exemptions for data (1-212) 622-4915

centers and exclude data centers from economic development grants, as well jeremy.b.tonet@jpmorgan.com

as legislation for new nuclear generation and how any cost overrun risk would Aidan C Kelly

look should the company pursue nuclear new build. Some investor feedback (1-212) 622-4912

aidan.x.kelly@jpmchase.com

cautioned on potential downside to ED capex, grounded by the Governor’s

Eli Jossen, CFA

commentary on keeping bills at inflation (though we note CECONY’s latest

(1-212) 622-4113

MYP targets 2.8% electric bill CAGR). eli.jossen@jpmchase.com

• AEE: We Can’t Fight This Feeling Anymore: UG to OW; Data Center Diana Niles

Growth, MO Very Constructive Lower Political Risk, Transmission Wins, (1-212) 622-3328

Financial Flexibility. We upgraded AEE to Overweight from Neutral diana.niles@jpmorgan.com

J.P. Morgan Securities LLC

following our bullish AGA meeting. With data center datapoints piling up, we