New Data Center Announced; SWEPCO Role Cited in Supporting Local Economic Growth

SWEPCO (AEP) announced Amazon will build a new data center in Northwest Louisiana, bringing customer-funded utility upgrades that SWEPCO says will not be charged to existing residential or business customers.

Rhea-AI Summary

SWEPCO (AEP) announced Amazon will build a new data center in Northwest Louisiana, bringing customer-funded utility upgrades that SWEPCO says will not be charged to existing residential or business customers. The project will add transmission and substation improvements overseen by the Louisiana Public Service Commission and aims to strengthen grid reliability and regional economic growth.

SWEPCO reported ongoing grid work since 2025, including inspections and pole replacements to support resilience and future commercial demand.

Positive

• Amazon data center announced for Northwest Louisiana
• Project-specific infrastructure funded 100% by Amazon
• Since 2025 inspected over 80,000 utility poles
• Replaced over 18,000 utility poles since 2025
• Trimmed nearly 1,300 line miles of trees since 2025

Negative

• None.

Argus Feb 23 session

+2.06% close to close Open Argus

Details

News Market Reaction – AEP

In the Feb 23 session, AEP gained 2.06%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement highlights AEP’s role in enabling Amazon’s new data center investment through grid...

Analysis

This announcement highlights AEP’s role in enabling Amazon’s new data center investment through grid upgrades that are funded by the customer rather than existing ratepayers. It reinforces a broader trend in recent AEP news: large-scale infrastructure, transmission expansion, and load growth from data centers and advanced digital services. Historically, the stock’s reactions to similar growth and grid projects have been mixed. Investors may watch how this project integrates into the company’s broader capital plan and regulatory oversight in Northwest Louisiana.

Key Figures

Utility poles inspected: 80,000+ poles Utility poles replaced: 18,000+ poles Vegetation trimming: 1,300 line-miles +4 more

Utility poles inspected

80,000+ poles

Inspected since 2025 in grid reliability program

Utility poles replaced

18,000+ poles

Replaced since 2025 to modernize infrastructure

Vegetation trimming

1,300 line-miles

Tree trimming to reduce service interruptions

Company founding year

1912

SWEPCO history of local economic support

Shares outstanding

534,094,530

Shares outstanding as of Nov 3, 2025 from S-3 summary

Last sale price

$119.92

AEP share price on Nov 3, 2025 in S-3 summary

Shelf capacity

$10,000,000,000

Maximum aggregate offering under Form S-3 shelf

Historical Context

5 past events · Latest: Feb 12

5 events

1. Feb 12

   Earnings results

   24h Move

   +3.4%

   Reported strong 2025 earnings, higher revenue, and reaffirmed long-term growth guidance.

2. Jan 20

   Dividend declaration

   24h Move

   -0.6%

   Announced regular $0.95 dividend and highlighted century-long payment streak.

3. Jan 07

   Transmission project

   24h Move

   +2.0%

   JV to invest $1.2 billion in 765-kV Wisconsin transmission line for reliability.

4. Nov 19

   Plant acquisition

   24h Move

   -1.5%

   Regulatory approval for acquiring 870 MW Oregon Clean Energy Center in Ohio.

5. Nov 05

   Strategic partnership

   24h Move

   -0.5%

   Long-term partnership with Quanta to support $72 billion transmission build-out.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

substations, transmission lines, smart meters, data‑center campuses

4 terms

substations technical

"project-specific improvements - including substations, transmission lines, or specialized equipment"

Substations are fenced facilities on the power grid where electricity is transformed, routed and controlled—think of them as traffic interchanges for electrical flow, using transformers and switches to change voltage and direct power between high-voltage long-distance lines and local distribution networks. They matter to investors because their condition, capacity and modernization affect utility reliability, maintenance costs, regulatory compliance and future growth; failures or upgrades can directly influence earnings, capital spending and the value of energy assets.

transmission lines technical

"project-specific improvements - including substations, transmission lines, or specialized equipment"

High-voltage towers and cables that carry electricity from power plants to cities and substations, like highways that move energy rather than cars. For investors, transmission lines are long-lived, capital-intensive assets whose condition, capacity and regulatory treatment affect utility revenues, reliability and the ability to connect new generation; bottlenecks or upgrades can change costs, permit timelines and future returns.

smart meters technical

"expanding transmission capacity, installing smart meters to speed outage detection"

Smart meters are digital devices that replace traditional utility meters to record and transmit electricity, gas, or water use in near real time. Like a fitness tracker for a home’s energy, they give detailed, time-stamped usage data and can communicate with the utility to enable remote readings and demand management. Investors care because smart meters change revenue and cost dynamics for utilities, enable new services and tariffs, and drive spending on infrastructure, data analytics, and cybersecurity.

data‑center campuses technical

"building large‑scale, sustainable data‑center campuses that support AI, cloud"

Large, localized complexes that house multiple data centers—buildings full of servers, networking gear and the power and cooling systems that keep them running. They matter to investors because they require big upfront investment but can generate steady, long-term rental income from cloud, web and AI customers and benefit from scale that lowers operating costs. Think of them like an industrial park for the internet, where well-located campuses attract reliable tenants and durable cash flow.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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For more information visit SWEPCO.com/ready or the NLEP project site NLEP.org/AWS

SHREVEPORT, La., Feb. 23, 2026 /PRNewswire/ -- Southwestern Electric Power Co. (SWEPCO) announced a new data center investment from Amazon that company leaders describe as the most significant economic development win Northwest Louisiana has seen in a generation. This investment brings new utility infrastructure upgrades that will deliver meaningful, long‑term benefits for SWEPCO customers while also supporting Amazon's data center operations.

"When more companies invest here, the cost of the electric system is shared more widely, contributing to long-term rate stability for all customers," explained SWEPCO President and Chief Operating Officer Brett Mattison.

Importantly, all costs associated with these new facilities will be fully covered by Amazon and will not be passed on to existing SWEPCO residential or business customers. Under the oversight of the Louisiana Public Service Commission, any project-specific improvements - including substations, transmission lines, or specialized equipment - will be funded by the customer. The infrastructure investments required to serve this project will strengthen the electric grid, enhance reliability, and help drive long‑term growth and resilience for communities across Northwest Louisiana.

Amazon's investment is expected to bring long‑term economic growth, high‑quality jobs, and substantial tax revenue for the communities SWEPCO serves. The project also brings grid upgrades that make power more reliable for everyone.  

This new investment builds on years of work SWEPCO has already been doing to modernize and strengthen the electric grid. Through ongoing upgrades and reliability improvements, SWEPCO has focused on better serving customers today while helping ensure the communities it powers are competitive and ready to attract new businesses and jobs.

"Reliable, resilient energy is one of the most important factors companies evaluate when choosing where to invest, and SWEPCO's infrastructure work helps make the places we serve a stronger contender for major economic development opportunities," said Paul Pratt, Vice President, Customer Experience and New Business Development.

To support this long‑term, customer-first approach, SWEPCO has been making steady, targeted improvements across its system. Efforts include but are not limited to replacing aging infrastructure, expanding transmission capacity, installing smart meters to speed outage detection and restoration, and trimming vegetation to reduce service interruptions. Since 2025, SWEPCO crews have inspected more than 80,000 utility poles, replaced over 18,000, and trimmed nearly 1,300-line miles of trees - all part of a sustained effort to improve grid performance, enhance reliability, and support the region's readiness for growth.

"Companies like Amazon choose communities where they see real momentum, a talented workforce, and a utility partner ready to deliver world-class infrastructure. Northwest Louisiana offers all of that and more," Mattison added. "We are proud to welcome them to our region."

SWEPCO's Mattison shared the stage Monday afternoon in Shreveport with Louisiana Governor Jeff Landry; Secretary of Louisiana Economic Development Susan Bourgeois; AWS Vice President Roger Wehner; Northwest Louisiana Economic Partnership President Justyn Dixon; STACK Infrastructure CEO Matt VanderZanden; Louisiana Public Service Commissioner Foster Campbell; Shreveport Mayor Tom Arceneaux; Caddo Parish Commission President Greg Young; and Bossier Police Jury President Tom Salzer as the Amazon investment was announced.

STACK Infrastructure is helping Amazon power America's digital future by building large‑scale, sustainable data‑center campuses that support AI, cloud, and high‑performance computing across the country. 

Mattison, who credited strong collaboration among state, regional and local partners, including the North Louisiana Economic Partnership, said the project comes at a time when rapidly expanding sectors such as artificial intelligence, cloud computing and advanced digital services require extremely reliable energy and robust grid infrastructure. 

"We are living through a once-in-a-generation technology and energy transformation," he said. "SWEPCO remains ready. Ready to serve. Ready to innovate. Ready to deliver." 

Since its founding in 1912, SWEPCO has partnered with public and private organizations to support projects that strengthen local economies. 

"This is what progress looks like - partners moving forward together, innovation fueling investment and reliable energy powering real economic growth," Mattison said. "We're proud to help power the future of this region." 

For media inquiries about power outages, local media matters, power plants, public safety, public policy, regulatory, environmental, and other statewide issues, please call our 24/7 media information line at 318.673.3060. For industry and corporate issues, please contact AEP's corporate media relations office at 614.716.1000

About Southwestern Electric Power Company (SWEPCO)
Southwestern Electric Power Company (SWEPCO), headquartered in Shreveport, Louisiana, delivers safe, reliable, and affordable electricity to more than 500,000 customers in Arkansas, Louisiana, and Texas. SWEPCO is an American Electric Power (Nasdaq: AEP) company. Learn more at SWEPCO.com. Connect with us by following Facebook.com/SWEPCO, Twitter.com/SWEPCOnews, Instagram.com/swepco, Youtube.com/SWEPCOtv and LinkedIn.com/company/swepco. 

About American Electric Power (AEP)
American Electric Power (Nasdaq: AEP) is committed to improving our customers' lives with reliable, affordable power. We expect to invest $72 billion from 2026 through 2030 to enhance service for customers and support the growing energy needs of our communities. Our nearly 17,000 employees operate and maintain the nation's largest electric transmission system with approximately 40,000 line miles, along with more than 252,000 miles of distribution lines to deliver energy to 5.6 million customers in 11 states. AEP also is one of the nation's largest electricity producers with approximately 31,000 megawatts of diverse owned and contracted generating capacity. We are focused on safety and operational excellence, creating value for our stakeholders and bringing opportunity to our service territory through economic development and community engagement. Our family of companies includes AEP Ohio, AEP Texas, Appalachian Power (in Virginia, West Virginia and Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana, east Texas and the Texas Panhandle). AEP also owns AEP Energy, which provides innovative competitive energy solutions nationwide. AEP is headquartered in Columbus, Ohio. For more information, visit aep.com.

 

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SOURCE Southwestern Electric Power Company

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did SWEPCO (AEP) announce about the new Amazon data center on February 23, 2026?

SWEPCO announced an Amazon data center investment in Northwest Louisiana with customer-funded grid upgrades. According to SWEPCO, the project includes substations, transmission lines and specialized equipment funded by Amazon under Louisiana Public Service Commission oversight.

Will SWEPCO (AEP) customers pay for the Amazon data center infrastructure upgrades?

No, SWEPCO says existing customers will not pay for project-specific upgrades funded by Amazon. According to SWEPCO, the customer will cover costs and the Louisiana Public Service Commission will oversee project-specific funding arrangements.

How will the Amazon data center affect SWEPCO (AEP) grid reliability and resilience?

The project will strengthen grid reliability and resilience through added substations and transmission capacity. According to SWEPCO, these infrastructure improvements are expected to enhance outage restoration and long-term system performance for the region.

What grid work has SWEPCO (AEP) completed since 2025 to prepare for growth?

Since 2025 SWEPCO has inspected over 80,000 poles, replaced more than 18,000, and trimmed nearly 1,300 line miles of trees. According to SWEPCO, these measures aim to improve reliability and support new commercial projects.

What economic benefits does the Amazon data center bring to SWEPCO (AEP) service areas?

The announcement is expected to drive long-term economic growth, jobs, and tax revenue in Northwest Louisiana. According to SWEPCO, the investment will support local development while strengthening the region's competitiveness for future projects.