SO - The data center growth world is its oyster (or peach)

Research evidence excerpt

SO - The data center growth world is its oyster (or peach)

Utilities

Utilities/Regulateds - Market Overweight

THE SOUTHERN COMPANY (SO) June 21, 2026

SO - The data center growth world is its oyster (or peach) Rating:

Peer Perform

The Wolfe Byte Price: $93.09

We visited SO to hear from executives spanning its businesses. Tailwinds from Price Target:

data center growth at the utilities to uprates/recontracting at Southern Power give NA

mgmt confidence on its LT EPS growth outlook, despite rate freezes and political View SO Model

noise. Stock near FV range. View Comp Table

Company Information

Data center growth to help with regulatory strategy. We visited SO at its ATL HQ 52-Week Range $84 - $100

Market Cap. (MM) $104,940

and heard from executives, including from GA Power and Southern Power. Despite Enterprise Value (MM) $182,814

investor questions on political noise in AL (rate freeze and PSC elections/changes) Shares Out. (MM) 1,127.3

and GA (PSC elections), SO sees robust growth from data centers, which can help Avg. Value Traded (MM) $1,895.15 SI% of Float 2.6%

with its regulatory strategy: putting downward pressure on customer rates as more

data center deals are signed. SoPower sees uprates/recontrating upside. Catalysts 105

are the GaPSC elections on 11/3 and new data center deals. SO stock trades at a 100

premium of 0.6-0.9x 2028-29E, just below the low end of our FV range. We have a

better appreciation of SO's data center and regulatory strategy. Given LT EPS growth

of 7-8% from large load growth and improving B/S, we see SO stock getting to a 90

1-1.5x premium, but elections remain overhang. 85

Contracted large load growth, more upside. SO has 11 GW of contracted large load Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26