Xcel Energy and NextEra Energy announced a strategic memorandum of understanding on February 4, 2026 that will enable the two utilities to collaborate on generation, storage, and transmission projects across Xcel’s service territories. The agreement is designed to accelerate the deployment of clean‑energy assets and to meet the growing demand from data centers and advanced manufacturing in the Midwest.
Under the MOU, Xcel will leverage NextEra’s extensive renewable and storage portfolio, while NextEra will gain a foothold beyond its traditional Florida base. The parties have agreed on key commercial terms, including investment commitments and revenue‑sharing arrangements, although specific amounts were not disclosed. The collaboration will focus on joint development of wind, solar, battery storage, and high‑voltage transmission lines that can serve large‑load customers such as data‑center operators.
For Xcel, the partnership supports its goal of 100 % carbon‑free electricity by 2050 and an 80 % emissions reduction by 2030. By tapping NextEra’s proven development platform, Xcel can accelerate the rollout of renewable projects and enhance grid reliability. For NextEra, the deal expands its footprint into the Midwest, strengthens its position as a leading integrated power solutions provider, and opens new revenue streams that align with its strategy to grow both merchant and regulated businesses.
The announcement was well received by investors. NextEra’s shares rose 1.6 % to $90.25, while Xcel’s shares increased 1 % to $76.40, reflecting confidence that the collaboration will capture the high‑growth data‑center market and support both companies’ sustainability agendas.
Xcel CEO Bob Frenzel said the partnership “aligns two of the best development teams in the industry,” while NextEra CEO John Ketchum highlighted the accelerating energy demand from data centers and advanced manufacturing as a key driver for the collaboration.
The memorandum positions Xcel and NextEra to capture growth in the data‑center and AI‑driven energy markets, potentially accelerating the deployment of renewable and storage assets across the Midwest and reinforcing Xcel’s long‑term sustainability trajectory.
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