Everything Money on $LNT (Nov 2, 2026)
Alliant Energy's best case is years of rapid growth if AI data-center demand lifts regional electricity use 60% by 2031, since regulated profit grows with invested capital; but heavy upfront spending, possible denial of cost recovery, project delays, debt and higher rates limit returns. The speaker dislikes the regulated spend-to-earn model and will not own Alliant Energy at all.
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The last stock that analysts recommend buying is Alliant Energy. This stock is extremely boring, and that's the point, really. It is a regulated electric and gas utility company, serving homes and businesses in the states of Iowa and Wisconsin.
Its stock has risen by about 10% this year. Utility companies of this type typically grow very slowly. But here's the exciting surprise: In the best-case scenarios, the region's energy-hungry AI data centers need huge amounts of electricity, and utility companies like Alliant are the first to meet that demand.
The administration expects electricity demand in its region to rise by 60% by 2031. For a stable utility company , that could mean years of surprisingly rapid growth .
Here's how the utility company actually makes money : Regulators allow it to make a fixed profit based on the money it invests in power plants and electricity transmission lines.
Therefore, the more it needs to build to serve these data centers, the wider its profit base becomes.
The boom in data centers not only brings in more customers , but also grows Alliant's profit base as long as management successfully implements its plans. What is the negative scenario?
Well, to meet all this new demand, Alliant has to spend huge sums upfront to build power plants and upgrade the electricity grid before any revenues come back to it. If regulators do not allow these costs to be recovered, or if large data center projects are delayed, the final return may be less than hoped for.
Public utility companies are also burdened with debt. Therefore, higher interest rates make financing any new project more expensive . If these data centers end up consuming less energy than expected, Alliant could find itself stuck with stations it built for customers who didn't fully arrive.
Now, folks, there's something I'd like to say here. I always tell people that I don't work in banking, insurance, or utilities. So, for this company, this is what I really want to let you know.
It's not about chasing every stock as an investment opportunity, it's about understanding what you understand and what you do n't understand. I don't understand the utilities sector , so I won't invest in it.
I don't like the concept of "it's all regulated, the more you spend, the more you earn". So where is the incentive to reduce spending? Therefore, I will completely abandon Alliant Energy, and I will not waste my time with them. I will look for another company that suits me.