Leap in Data Center Pipelines Drives Market Reform

Research evidence excerpt

Leap in Data Center Pipelines Drives Market Reform

FICC Research

Credit Research

7 July 2026

High Grade/High Yield Power & Utilities

Leap in Data Center Pipelines SIGNATURE

Drives Market Reform

Key Points: 1) Utility "high probability" pipelines jumped Srinjoy Banerjee, CFA

nearly 50% in 1Q 26 earnings, driven by TX, 2) New market +1 212 526 3521

srinjoy.banerjee@barclays.com

mechanisms/reforms in PJM and ERCOT, 3) We continue to BCI, US

favor IPPs as large load buildout key beneficiaries. Ishaan Pandya

+1 212 526 2970

ishaan.pandya@barclays.com

BCI, US

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Quick Takes

We update our Power & Utility Data center/large load tracker for the sector following 1Q 26

results and recent conferences with the latest updates. Please see Data Centers Drive over

250GW Load Growth Opportunity for the previous discussion.

• Nearly 400GW of data center/large load higher-probability pipelines reported by utilities

in 1Q 26 earnings versus 275GW during 4Q 25: The substantial, near 50% pickup over the

quarter was largely driven by Texas, and especially Oncor, though some integrated utilities

(DUK, SO, NEE) also saw growth in their pipelines. Not all GWs are created equal for

capex: For vertically integrated utilities (VIUs), the capex opportunity is substantial at

$2-3bn+ per GW given the cost of new generation resources, while for T&D utilities the initial