Sidoti Raises SPX Technologies Price Target to $193, Maintains Buy Rating

Sidoti raised SPX Technologies' price target to $193 from $175 and maintained a Buy rating. The firm cited continued positive secular trends, including data center power consumption expansion and healthcare construction buildout. Estimates were increased, supporting the analyst's positive outlook.

Title: CoreWeave's Data Center Expansion: Straining Texas Power Grid

CoreWeave Inc. is expanding a data center in Denton, Texas, which is projected to double the electricity needs of the city, highlighting the growing strain that artificial intelligence (AI) workloads are placing on the U.S. power supply. The data center, being developed by Core Scientific Inc. and used by OpenAI, is expected to consume significant amounts of electricity, exacerbating existing grid challenges.

Local officials in Denton have been grappling with how to handle the increased stress on the electricity grid from the project. Antonio Puente, general manager of local utility Denton Municipal Electric, stated that the city will have to make additional transmission investments to serve the entire load from Core Scientific [1].

The data center, initially focused on cryptocurrency mining, has pivoted to AI workloads, resulting in unrelenting power consumption. This transition means that the site will no longer curtail operations when power prices are high, further increasing grid strain. To mitigate this challenge, the city is constructing additional grid infrastructure and passing on any extra costs to the data center operator [1].

Unlike many large projects, the Denton data center did not receive local tax exemptions. Officials anticipate that the expansion will generate more than $600 million in property and sales tax, more than double the costs it plans to incur. The project is also expected to create 135 new jobs [1].

The Texas power grid could see planning reserve margins go negative as early as 2026 due to power use from data centers, oil and gas facilities, and cryptocurrency mining. The Electric Reliability Council of Texas (ERCOT), which manages the grid, noted that the sheer amount of new demand represents a significant challenge [2].

Sidoti, a financial analyst, raised SPX Technologies' price target to $193 from $175 and maintained a Buy rating, citing continued positive secular trends, including data center power consumption expansion and healthcare construction buildout. The firm also increased its estimates, supporting the analyst's positive outlook [2].

References:
1. [https://www.bloomberg.com/news/articles/2025-07-14/coreweave-expands-dallas-area-data-center-power-grid-strains-grow](https://www.bloomberg.com/news/articles/2025-07-14/coreweave-expands-dallas-area-data-center-power-grid-strains-grow)
2. [https://finance.yahoo.com/news/futu-spxc-better-value-stock-154003575.html](https://finance.yahoo.com/news/futu-spxc-better-value-stock-154003575.html)