Alliant Energy Corp Stock Just Hit an All-Time High. Here Are 3 Tailwinds Boosting the Stock.

Since the start of the year, Alliant Energy's (NASDAQ: LNT) stock has surged 12.4%, outpacing the S&P 500 by a wide margin. (The S&P 500 is down 1.9% year to date.) The utility stock has enjoyed strong momentum, hitting a new all-time high amid positive developments. Here are three tailwinds fueling Alliant Energy's stock.

1. Data center energy demand is driving strong growth

The primary growth driver for Alliant Energy is the influx of data centers in the U.S. Midwest. Analysts with Wells Fargo have noted that Wisconsin and Iowa are hotspots for data center developments.

Notably, Alliant Energy's ability to manage large-scale power demand in the region is highly appealing for data center developers. The company has already secured land zoned for industrial use and has existing access for fiber and transmission networks, so hyperscalers don't need to wait for lengthy transmission line construction.

Alliant has executed four Electric Service Agreements (ESA) totaling 3 gigawatts (GW) of load with hyperscaler customers. These contracts are expected to drive a 50% growth in peak demand by 2030. Three of the four contracted data center projects are already under construction -- two in Cedar Rapids, Iowa, and one in Beaver Dam, WI. Alliant is also in active negotiations for an additional 2 to 4 GW of large load growth opportunities, which could drive even more growth for the utility provider.

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2. Favorable regulations provide visibility into future growth

Another thing analysts have highlighted is Alliant's advantageous regulatory position. The regulatory environment in Iowa and Wisconsin is more "utility-friendly," helping provide stability and mitigate some risks. In Wisconsin, the government sets electricity prices two years in advance. In Iowa, base rates are frozen until 2029, unless Alliant's return on equity falls below a certain threshold, preventing any surprises while setting a floor for profits.

Additionally, both states use Individual Customer Rates (ICRs) for data centers, ensuring that the costs to serve these large loads don't burden existing customers. ICRs require hyperscalers to pay for infrastructure upgrades, and can allow Alliant to move quickly, making it highly appealing for fast-moving hyperscalers looking to bring data centers online.

In December 2025, Alliant reached a unanimous rate review settlement in Wisconsin for 2026 and 2027. This provides financial predictability over the next two years and allows it to focus solely on building infrastructure to meet growing demand.

3. It is spending big on new energy capacity

To meet the new demands, Alliant is increasing its four-year capital expenditure forecast by 17% to $13.4 billion. In the coming years, the company will add new capacity through additions and upgrades, including 1,600 megawatts (MW) of new natural gas resources, 1,000 MW of new energy storage, and 1,300 MW of new renewable energy. Its investments support a projected compound annual growth rate in the rate base of 12% from 2025 to 2029.

Because the company earns a regulated return on its investment, this massive spending plan provides visibility into future earnings growth. It helps support an increased long-term earnings-per-share growth target of 5% to 7%, with management expecting to hit the high end of that range in 2027 to 2029.

Wells Fargo is an advertising partner of Motley Fool Money. Courtney Carlsen has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.