Dominion Energy beat Wall Street estimates for third-quarter profit on Friday, as the electric utilities company benefited from lower costs and steady electricity demand during hot weather.

Utilities are set to gain from growing electricity demand, driven primarily by AI technology and data centers, alongside increased power usage in homes and businesses amid record temperatures.

The U.S. Energy Information Administration (EIA) forecasts power consumption to hit record peaks in 2024 and 2025.

The Richmond, Virginia-based company's total operating revenue rose to $3.94 billion in the third quarter from $3.81 billion last year, while total operating costs fell 2% to $2.72 billion.

Last month, Dominion signed an agreement with e-commerce giant Amazon to explore developing a nuclear project near the utility's existing power station in Virginia.

Dominion's Virginia utility services the world's largest data center market, which surpasses the combined capacity of the next five largest data center markets in the United States, according to the company.

The company narrowed its full-year operating earnings forecast to $2.68-$2.83 per share, maintaining a $2.75 midpoint, slightly below analysts' expectations of $2.77 per share, according to LSEG data.

It reported operating earnings of 98 cents per share in the July-September quarter, ahead of analysts' estimates of 93 cents per share.