FRANKFURT, Feb 25 (Reuters) - E.ON, Europe's largest operator of energy networks, on Wednesday said it is raising investments to 48 billion euros ($57 billion) over the next five years, in a push to
E.ON Boosts Investment to $57B, Shares Reach 15-Year Peak
By Christoph Steitz and Tom Käckenhoff
FRANKFURT/ESSEN, Germany, Feb 25 (Reuters) - E.ON, Europe's largest operator of energy networks, is raising spending to 48 billion euros ($57 billion) by 2030, it said on Wednesday, in a push to expand and protect grids and prepare them for a build-out of data centres across the continent.
Increased Investment in Energy Infrastructure
Grid operators are rushing to spend more money on their assets, faced with rising demands on power infrastructure, including renewables, storage and an expected surge in electricity demand to power artificial intelligence projects.
Recent grid outages have also highlighted the need to secure what is seen as the backbone of power supply, efforts that are becoming more challenging as networks grow and full protection is virtually impossible.
CEO Leonhard Birnbaum said energy networks in Germany -- Europe's top economy -- were too exposed, adding legislation that requires operators to make grids transparent online would have to be changed "as soon as possible".
Challenges in Securing Energy Networks
"All of Germany's critical infrastructure is effectively available on the internet and geolocated," CEO Leonhard Birnbaum told journalists after presenting full-year results.
"This cannot be reversed, but for everything we build from now on, we should at least strive to ensure that this is no longer the case in future."
SHARES HIT HIGHEST LEVEL SINCE MAY 2011
Details of the New Investment Plan
The new investment plan, running from 2026 to 2030, compares with a 43 billion euro programme over the 2024 to 2028 period, and highlights E.ON's efforts to pump more money into regulated networks to boost its asset base and profits.
Around 40 billion euros of that will flow into the 1.6 million kilometres of energy networks E.ON operates across Europe, it said, reflecting a "heightened threat landscape for critical infrastructure" and demands placed on the grid by data centres.
E.ON said the updated investment programme was contingent on adequate returns set by Germany's energy regulator.
Share Performance and Market Impact
Shares in the company rose as much as 3.1% to their highest level since May 5, 2011.
Utility stocks have been among the beneficiaries of an AI-related boom, along with expectations that a surge in data centres needed to power the technology will also drive demand for power and related infrastructure, including grids.
Year-to-date, E.ON shares have gained more than 16%, outperforming the broader sector index as well as European stocks overall.
Financial Outlook and Dividend Plans
E.ON, Germany's biggest energy firm, also recommended increasing its dividend for 2025 by 4% to 0.57 euros per share and expects core profit of 9.4 billion to 9.6 billion euros in 2026, down from 9.8 billion last year.
Analysts in a poll provided by the company expect core profit of 9.5 billion euros in 2026.
($1 = 0.8477 euros)
(Reporting by Christoph Steitz and Tom Kaeckenhoff, Editing by Linda Pasquini and Shri Navaratnam)
