Utility Earnings Calls Show Growing Focus on Cost Recovery Amid Data Center Buildout

Utilities continue to promote their data center pipelines, according to a Utility Dive review of more than two dozen earnings calls, even as they face growing equipment backlogs and public backlash that has analysts questioning whether they can execute on all their projects and recover costs.

Analyst commentary

Shelby Tucker, a U.S. power and utility sector analyst with TD Cowen, wrote in a note last week that "growth remains intact, but affordability is emerging as key constraint." He said the focus is shifting toward demonstrating that growth benefits existing customers "through fixed-cost dilution, improved system utilization, and targeted regulatory structures," rather than simply avoiding customer harm.

Tucker added that "future growth will be judged not by the magnitude of investment, but by how effectively utilities allocate costs, protect existing customers, and demonstrate tangible customer benefits alongside shareholder returns."

Equipment makers less pressured

The report notes that these pressures are less of a concern for companies that design and build power infrastructure. The three major gas turbine makers have announced backlogs ranging from 35 to 116 GW as they increase manufacturing capacity.