RWE nine month earnings surpass forecasts due to British data center sale

Key Financial Highlights

Germany’s largest power producer, RWE, reported higher-than-expected profits for the first nine months of 2025. This performance was mainly attributed to a €225 million book gain from the sale of a data centre project in the UK, outpacing market expectations despite an overall dip in adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) by 13 percent to €3.48 billion. This figure still exceeded the anticipated €3.14 billion, as estimated by a company-provided poll[1].

Data Centre Sale and the Hyperscaler Trend

The standout result came largely from the sale of a significant data centre project located on a former coal-fired power plant site in Britain. This asset was bought by an unnamed hyperscaler—a term commonly referring to major cloud service providers such as Meta Platforms, Amazon, Microsoft, or Google. Although the funds were received only in October, RWE included the transaction in its nine-month earnings figures[1].

Hyperscalers continue to direct massive investments toward building new data infrastructure to meet soaring demand for AI-powered computing. According to analysts, investments from the five leading hyperscalers—including ChatGPT creator OpenAI and Oracle—are projected to nearly double to $500 billion per year by 2027[1].

Driving Forces: AI and Renewable Energy Demand

Michael Mueller, RWE's finance chief, attributed the positive outlook to the artificial intelligence boom, which is rapidly increasing global electricity and renewable energy demand: “The artificial intelligence boom is driving worldwide demand for electricity and, thus, the demand for renewable energy,” Mueller remarked, highlighting strong business prospects.

Sector Outlook and Industry Implications

• Data centre investment hit record levels in 2025, with more than half a trillion dollars pledged at the start of the year and demand still accelerating[3].
• Electricity consumption for data centres is a growing concern, prompting innovations in renewable energy integration and advanced cooling technologies.
• European data centre power demand is projected to double by 2030, with the UK and Germany as prime growth markets. Grid access remains a key challenge as the sector scales[6].

Conclusion

RWE’s strong financial performance amid the ongoing transition from fossil fuels to digital infrastructure demonstrates the value of strategic asset repositioning. With the continued rise of AI and digital services, demand for renewable energy and large-scale data centres is expected to remain robust, offering fresh opportunities and challenges for energy producers and technology providers alike.