TotalEnergies SE (TTE) is expanding its power generation footprint to meet surging demand from data centers, a move underscored by TD Cowen's upgrade of the stock and a new price target of €75. The company's strategic pivot reflects growing energy needs in digital infrastructure, with implications for energy and infrastructure equities.
- TotalEnergies expanding power capacity by 1.2 GW by 2028 to serve data center demand
- TD Cowen raises TTE price target to €75, citing data center energy growth
- Data center electricity consumption projected to grow 18% annually through 2030
- TTE has secured a 200 MW PPA with a U.S. AI infrastructure firm
- 1.2 GW of new infrastructure to be deployed in France and Texas
- S&P Europe Energy Index up 3.2% over 30 days amid sector confidence
TotalEnergies SE (TTE) has announced a strategic expansion of its power generation segment, targeting a 40% increase in dedicated power capacity by 2028 to support the escalating energy demands of global data centers. This initiative includes the development of 1.2 gigawatts (GW) of new power infrastructure across Europe and North America, with initial projects in France and Texas currently in permitting and construction phases. The move comes as data center electricity consumption is projected to rise by 18% annually through 2030, driven by AI and cloud computing growth. The expansion aligns with a broader industry shift toward reliable, scalable power sources, where fossil-fuel-based generation remains critical during peak load periods. TotalEnergies is leveraging its existing LNG and gas-fired assets to ensure grid stability, with a focus on integrating flexible generation to complement renewable inputs. The company has also signed long-term power purchase agreements (PPAs) with major tech firms, including a 200 MW contract with a U.S.-based AI infrastructure provider. TD Cowen recently upgraded TTE to 'Outperform' and raised its price target to €75 from €68, citing the company's proactive positioning in high-growth power markets. The firm highlighted that data center energy demand could account for up to 10% of global electricity use by 2030, creating sustained tailwinds for energy providers with diversified generation portfolios. The stock has responded positively, with TTE trading at €65.80 as of mid-March 2026, reflecting improved investor confidence. Market participants across energy and infrastructure sectors have taken note, with related equities such as ENGIE and EDF seeing modest gains. The broader S&P Europe Energy Index has risen 3.2% in the last 30 days, while the VIX index closed at 16.4, indicating lower volatility despite geopolitical headwinds. This suggests growing market conviction in energy stocks with clear demand drivers tied to digital transformation.