DTE Energy targets $148 price as analysts eye data center growth potential

While the AI boom has minted fortunes for chipmakers and cloud giants, the less glamorous side of the equation, keeping all those GPUs powered, is turning a Michigan utility into a surprisingly compelling growth story.

DTE Energy has locked in 2.4 GW of executed power agreements with hyperscale data center operators. That includes a 1.4 GW deal with Oracle and a 1 GW agreement with Google, two of the most aggressive builders in the AI infrastructure race. Analysts at 24/7 Wall St. have slapped a $148.32 price target on the stock, implying roughly 12-13% upside from recent trading levels around $130-132.

The pipeline keeps growing

The 2.4 GW already under contract is just the opening act. DTE’s management has identified a total pipeline of approximately 8.4 GW in hyperscale opportunities when earlier-stage projects are included. Of that pipeline, around 2 GW is currently in advanced discussions, with the company targeting a signed contract by the end of 2026.

CEO Joi Harris has put a number on what this growth means for shareholders. She projected that adding an incremental 3 GW of capacity could push DTE’s long-term earnings-per-share growth rate above 8% through 2030. The company’s baseline target sits in the 6-8% range.

For 2026, DTE is projecting EPS in the range of $7.59 to $7.73.

A $36.5 billion capital plan

DTE has laid out a $36.5 billion capital plan covering 2026 through 2030, with $30 billion of that earmarked specifically for electric operations.

The hyperscaler agreements could also delay DTE’s next electric rate case until 2028, depending on project timelines.

Why utilities are the AI trade nobody talks about

Oracle, Google, Microsoft, and Amazon are all racing to secure reliable power supplies measured in gigawatts, not megawatts. That competition has turned regulated utilities with available capacity and transmission access into something they’ve never been before: growth stocks.

The competitive landscape is worth watching. Other utilities like Dominion Energy, Duke Energy, and Entergy have also been courting hyperscaler deals, but DTE’s 2.4 GW in executed agreements puts it near the front of the pack among pure-play regulated utilities. The Oracle deal alone, at 1.4 GW, is one of the largest single utility-hyperscaler agreements publicly disclosed.

The key risk is execution. Building out gigawatts of new capacity requires permitting, construction, grid upgrades, and generation procurement, all of which can face delays. If hyperscaler timelines slip, so does DTE’s revenue ramp.