RWE to ramp up US business with €17bn investment

12th Mar 2026 12:10

(Sharecast News) - Germany's RWE unveiled plans to invest billions in its US business on Thursday, as it looked to cash in on the booming data centre sector and navigate tariff risks.

The renewable power generator, Germany's largest, said it planned to invest a total of €35bn between 2026 and 2031, €17bn of which would be in the US. The intention is to boost installed capacity in America to 22GW from its current level of 13GW.

RWE said there was high power demand growth in the country, driven by data centres and electrification. Artificial intelligence requires vast, power-hungry data centres, and many are built with their own dedicated sources of energy.

RWE also flagged a particular advantage for the technologies it specialises in - wind, solar, battery storage and gas generation - as they have a short time to market. The expansion also mitigated tariff risks, it noted. "The US remains our most important growth market," it said.

Markus Krebber, chief executive, said: "With our €35bn net investment programme through to 2031, we are building new generation capacity to meet the growing demand for electricity in Europe and the United States.

"In the US, we are broadening our portfolio and now focusing on gas in addition to renewables.

"Our investments will pay off: our adjusted earnings per share will grow from €2.48 today to €4.40m by 2031."

As at 1145 GMT, the Frankfurt listed-stock had put on 3%.

The update came as Essen-based RWE posted full-year results showing a fall in adjusted earnings before interest, tax, depreciation and amortisation, to €5.1bn from €5.7bn a year previously, driven in part by lower earnings at its offshore wind division. It was, however, at the upper end of guidance.

Adjusted net income fell to €1.8bn from €2.3bn, also at the upper end of guidance.

Looking to the current year, RWE said it expected operating earnings to improve, supported by the commissioning of new wind and solar farms and battery storage facilities.

Adjusted EBITDA was forecast to come in between €5.2bn and €5.8bn, and net income between €1.55bn and €2.05bn.

It also forecast a further rise in earnings and net income in 2027.