Alliant Energy Corp Stock Just Hit an All-Time High. Here Are 3 Tailwinds Boosting the Stock.

Alliant Energy's stock has reached an all-time high, primarily fueled by the growing demand for energy from artificial intelligence data centers in the U.S. Midwest. Analysts from Wells Fargo have identified Wisconsin and Iowa as key development hotspots, citing Alliant's capability to manage large-scale power requirements. The utility has already secured four Electric Service Agreements (ESAs) totaling 3 gigawatts (GW) with hyperscaler customers, projecting a 50% increase in peak demand by 2030. Three of these contracted data center projects are actively under construction: two in Cedar Rapids, Iowa, and one in Beaver Dam, Wisconsin. Alliant is also negotiating for an additional 2 to 4 GW in load growth opportunities. The company's success is further bolstered by "utility-friendly" regulatory environments in Iowa and Wisconsin. In Wisconsin, electricity prices are set two years in advance, while Iowa has frozen base rates until 2029. Both states utilize Individual Customer Rates (ICRs) for data centers, which ensure that hyperscalers bear the cost of infrastructure upgrades, thus preventing the burden from falling on existing customers and allowing for rapid deployment. Alliant recently secured a unanimous rate review settlement in Wisconsin for 2026 and 2027, providing financial predictability. To meet this escalating demand, Alliant is increasing its four-year capital expenditure forecast by 17% to $13.4 billion, planning to add 1,600 megawatts (MW) of natural gas resources, 1,000 MW of energy storage, and 1,300 MW of renewable energy. This significant investment is expected to drive future earnings growth, supporting a long-term earnings-per-share growth target of 5% to 7%.