JPMorgan Upgrades Fortum Stock on Google Data Center Deal

JPMorgan has upgraded Fortum's stock rating to Neutral from Underweight, citing a recent power purchase agreement between the Finnish energy company and Google.

The deal involves a 22-year contract for a data center supplied by Fortum's Loviisa nuclear plant in Finland. According to JPMorgan, the premium paid by Google over the Nordic forward curve indicates tighter supply and demand than expected by 2030.

JPMorgan estimates that the power purchase agreement was signed at around EUR80-EUR90 per megawatt-hour, significantly higher than the current Nordic wholesale power prices. The firm had previously underestimated the upside risks from data centers and tightening Nordic power markets.