NEW YORK, May 29, 2026, 07:04 (EDT)
- AEP fell 1.4% to close at $127.76 on Thursday, marking its third day lower in a row.
- The utility gave back gains after a May run that followed news about data-center power demand and an increased capital plan.
- Traders are looking at cost protection for customers, new equity raises and what’s next for load-growth updates.
American Electric Power stock is weaker going into Friday after a third day down. Traders are questioning how much of the data-center angle is already baked in.
AEP finished Thursday at $127.76, down 1.4%. The S&P 500 added 0.58% and the Dow inched up 0.05%. Shares traded 8.38% under the May 5 peak of $139.44. Volume was above the 50-day average, according to MarketWatch.
This comes up now since the normal U.S. trading session hasn’t started yet. Nasdaq trades from 9:30 a.m. to 4 p.m. Eastern, and the exchange’s 2026 holiday schedule shows Memorial Day as closed on May 25. That’s not Friday, May 29.
AEP tracked the drop in regulated utilities but fared worse than its peers Thursday. Duke Energy dropped 1.27%, Southern Co. slid 1.30%, and NextEra Energy gave up 0.46%. AEP underperformed all three, MarketWatch’s peer comparison showed.
AEP slipped after a big run last month. The Columbus, Ohio utility told investors May 5 it’s upping its five-year capital plan to $78 billion from $72 billion. The increase comes from more spending on transmission and new generation as power demand rises in Ohio, Texas, Indiana and Oklahoma. AEP said its beefed-up plan should push rate base growth close to 11% a year. “Rate base” is the regulated asset value on which utilities can earn returns. AEP
AEP CEO Bill Fehrman said the company is seeing “substantial demand growth,” calling out data centers and big power users, but said the focus on affordability remains “intense.” The company reported signed first-quarter deals that tacked on 7 GW of new load, bringing expected incremental load to 63 GW by 2030. A gigawatt is a large electric capacity unit. AEP
AEP made another push this week to answer the bill-pressure question. In a company feature May 28, the company said large-customer agreements and rate structures are set to offset as much as $16 billion in costs for current customers over the contracts’ terms. It also said residential customers should see a smaller portion of fixed costs as more big users join.
A financing piece is in the mix too. On May 12, AEP set a price of $127 for 20.47 million common shares in a registered forward stock sale. The forward structure gives AEP flexibility to finalize settlement later at preset terms. The company said if it settles the deal physically, proceeds could go toward corporate needs, adding capital to utilities, buying assets, or paying debt.
AEP’s first-quarter numbers support the growth story, though questions about valuation are still there. The company posted GAAP earnings of $1.61 per share, with operating earnings — which strip out some items — at $1.64. AEP stuck to its 2026 operating earnings outlook, calling for $6.15 to $6.45 per share.
AEP’s strong tie to data centers is growing, with Reuters reporting after May 5 results that about 90% of AEP’s projected 63 GW of new contracted load by 2030 is coming from those customers, including hyperscalers — the biggest cloud and AI infrastructure players. Revenue climbed to $6.02 billion from $5.46 billion a year ago, beating estimates, according to Reuters, which cited LSEG data.
The risk for investors is that the load build could drag out, end up more expensive, or trigger more scrutiny from regulators than the market is pricing in now. AEP has said that how fast it can build out in Texas depends on how much power comes from other generators, and higher grid spending could run into political trouble if customer bills climb faster than savings show up.
The next few sessions set up a clear watch for the stock — can it stay close to the $127 offer, or will it slip further from its May climb. Another full trading day lands Friday, leaving the market with a simple level to track.
