NEW ORLEANS, April 1, 2026, 09:08 CDT
Entergy kept climbing Wednesday, with shares changing hands around $113.74 after Tuesday’s close at a new 52-week high of $112.36—the stock’s seventh consecutive advance. Bullish calls rolled in this week, as Mizuho set a $120 target and UBS reiterated its own $120 view. MarketWatch
This rally has caught attention, as investors search for utilities positioned to benefit from AI-fueled electricity demand but insulated from direct pressure on consumer rates. In that context, Entergy’s new agreement with Meta stands out: it’s seen as perhaps the most concrete example to date of a tech giant committing capital to the energy infrastructure supporting its own data center expansion. Reuters
Last week, Entergy said Meta is set to cover the entire service cost for its planned $10 billion hyperscale data center in Richland Parish, Louisiana, after a revised deal that’s projected to tack on about $2 billion in customer savings over two decades—this comes on top of the $650 million figure previously released. The project spans seven gas-fired plants totaling more than 5.2 gigawatts, plus high-voltage transmission, battery storage, and nuclear upgrades. Reuters
Phillip May, who heads Entergy Louisiana, pointed to “targeted investments that strengthen reliability.” Meta’s Rachel Peterson, VP for data centers, emphasized the setup meant “other consumers aren’t paying our costs.” Entergy
Anthony Crowdell at Mizuho bumped his Entergy price target up to $120 from $112, sticking with an Outperform call this Monday. His note pointed out that just the 5.2-gigawatt phase has the potential to boost earnings by roughly 85 cents per share past 2030. TipRanks
UBS’s William Appicelli is sticking with his Buy call and a $120 price target, pointing to the Meta partnership and Entergy’s regulated capex pipeline as drivers for a premium valuation. UBS notes the company’s asset portfolio and tight regulatory fit could help it outpace much of the sector in growth down the road. TipRanks
The point lines up with Entergy’s bigger strategy. Back in February, the New Orleans utility added $2 billion to its projected capital spending, pushing the 2026-2029 total to $43 billion. Entergy also said its existing data-center deals are expected to deliver roughly $5 billion in fixed-cost contributions over the contracts’ lifetimes—revenue that should help ease the pressure on residential rates. Reuters
It’s not just Entergy chasing the AI-driven jump in electricity demand. Constellation Energy is pushing to bring Three Mile Island back online for Microsoft’s data centers, while Google, according to Reuters, has signed up to restart a NextEra plant in Iowa. Big Tech’s appetite for power is forcing utilities to rethink their investment strategies. Reuters
The deal isn’t a sure thing yet. Entergy’s new Louisiana proposal is still waiting for regulators to sign off, with a decision eyed for the fourth quarter of 2026. Critics caution the arrangement could still expose customers to risk if Meta’s power demand drops, despite Entergy’s insistence that Meta remains on the hook for its own costs under the contract.
Management plans to spell out the financial impact from the Meta expansion when it reports first-quarter results on April 29. Investors will be tracking that update, with the stock hovering close to new highs following a seven-day climb. Entergy
