Initiate At Hold: Valuation Looks Fair As Midwest Data Centers Ramp Up

Research evidence excerpt

Initiate At Hold: Valuation Looks Fair As Midwest Data Centers Ramp Up

TD Cowen Alliant Energy Corp.

Global Research July 7, 2026

We are initiating coverage of Alliant Energy with a Hold rating and an $83 price target. LNT is

a regulated electric and gas utility that operates through two subsidiaries, Interstate Power &

Light (Iowa) and Wisconsin Power & Light, serving customers across the Midwest. LNT provides

dependable earnings growth through contracted large load demand from data centers that

should sustain growth through 2029. Our Hold rating reflects pressure on credit metrics,

execution risk tied to required generation buildout, and an already premium valuation versus

peers.

Key Topics

Data Center Demand

Data center demand is a key earnings driver for LNT. The company has five signed electric

service agreements (ESAs) across three major developers and hyperscalers - QTS (2x),

Google, and Meta - and in April of this year announced a 370MW ESA in Iowa, bringing total

contracted demand to ~3.4GW. Several in-plan ESAs are now ramping, with three currently

under construction and supported by fully built transmission. Two Cedar Rapids-based ESAs

(QTS and Google) comprise ~1.9GW of the 3.4GW total. Management excludes speculative

or anticipated ESAs from its plan, meaning all included demand is fully contracted, though

an additional ~2-4GW remains under active negotiation, suggesting meaningful future upside

potential.

LNT is well positioned to service data centers with both generation and transmission

infrastructure in Iowa. This is highlighted by the company's 900MW QTS data center located

less than one mile from an ITC transmission connection point. Iowa provides a favorable

environment for data center development for the following reasons:

■Iowa is more rural.