Xcel Energy says it needs to increase infrastructure spending by $11 billion over the next five years to address a range of challenges facing the electricity industry at the same time, from a major ramp-up of power-hungry data centers to the transition to clean energy Damage from major storms and wildfires.

Just last year, Minneapolis-based Xcel announced it would spend $34 billion from 2025 to 2030. But on Thursday it said it needed $45 billion to keep up with demand for its services – nearly 30% of which would be spent in Minnesota and the Dakotas.

The company also said Thursday that it plans to file a new Minnesota electricity rate case with Minnesota regulators on Friday to help fund investments in the state over the next few years. Xcel will seek a $491 million increase over two years – a 9.6% increase in 2025 and a 3.6% increase in 2026. The bill increases would be less than that percentage, according to Xcel, because the utility plans to pass on savings from federal tax credits for nuclear energy production.

“We as a company, we as an industry, will likely have to invest more quickly than we have in the past to keep up with the reliability and secure service for our customer base,” said Bob Frenzel, CEO of Xcel. said in an interview. “Our customers demand speed and scalability. The climate requires speed and scale.”

Xcel's latest investment plans include major investments in its aging power grid. Approximately 63% of spending over the next five years will go toward upgrades and additions designed to modernize and harden Xcel's transmission and distribution system. This will help Xcel transport wind and solar energy over long distances and protect against severe weather and wildfires, as well as what the company calls national security issues.

Xcel's territory includes eight states, including Texas and Colorado, which have seen devastating wildfires in recent years that led to lawsuits against the company.

The investment plan was announced alongside the release of Xcel's third-quarter earnings report on Thursday.

Xcel Energy reported revenue of $3.64 billion for the quarter ended September 2024, down 0.5% year over year. Net income was $682 million, or $1.21 per share, compared with $656 million, or $1.19 per share. Current earnings, which exclude one-time events, were $1.25 per share, falling short of Wall Street estimates.