DTE Energy’s Data Center Expansion Fuels Growth Outlook

DTE Energy has surpassed market expectations, reporting third-quarter operating earnings of $2.25 per share - a full 15 cents above analyst projections. The utility's breakthrough partnership with Oracle represents a transformative development, securing a 1.4-gigawatt power agreement for a new Michigan data center facility that will expand the company's electricity load by 25%.

The Oracle contract, extending through 2045 with renewal options, establishes DTE Energy's entry into the hyperscale computing sector. More significantly, the company is already advancing negotiations for an additional 3 gigawatts of data center capacity. This strategic repositioning has prompted upward revisions to financial guidance, with DTE Energy forecasting operational earnings between $7.59 and $7.73 per share for 2026.

Should investors sell immediately? Or is it worth buying DTE Energy?

Divergent Analyst Perspectives

Market experts display mixed reactions to DTE Energy's prospects. UBS has raised its price target to $158 while maintaining a buy recommendation, contrasting with Barclays' more cautious $148 target and Equal Weight rating. Jefferies reduced its assessment to $149, suggesting current growth expectations are already reflected in the stock's valuation. The central question remains whether the data center expansion can overcome this measured outlook.

• 25% electricity load increase from 1.4 GW Oracle agreement
• Advanced negotiations underway for 3 GW additional capacity
• 2026 operational EPS forecast of $7.59-$7.73
• $30 billion five-year capital investment plan

Transformational Capacity Potential

With a $30 billion investment pipeline and potential data center capacity reaching 8.4 gigawatts, DTE Energy stands at the threshold of its most significant corporate transformation. The stock's modest retreat to $133.77 appears as a temporary pause before potential substantial movement. The technical positioning remains compelling as shares navigate between the 50-day average of $138.61 and the 200-day average of $136.77, establishing a foundation for its next directional move.