April 29 (Reuters) - U.S. electric utility Entergy ETR.N reported a 6.7% rise in first-quarter profit on Wednesday, as a surge in data center-driven power demand and higher retail sales helped counter rising costs.

U.S. power demand hit record levels in 2025 and is expected to grow even faster as tech companies rapidly build out data centers, some of which use as much electricity as an entire city.

In addition to demand from data centers for artificial intelligence and cryptocurrency, power use by homes and businesses also increased as consumers increasingly turned to electricity over fossil fuels for heating and transportation.

Entergy provides electricity to about 3 million customers across Arkansas, Louisiana, Mississippi and Texas.

The company said its weather-adjusted retail sales rose 6% from last year, buoyed by higher industrial usage as sales to data centers, metal producers, and transportation customers increased.

The New-Orleans-based utility's industrial sales for the quarter grew nearly 15% to 15,895 gigawatt hours.

However, as of March 31, the company's debt levels grew 10% to $34.18 billion.

Entergy also saw operating expenses rising nearly 22% to $2.61 billion for the January-March period.

The company posted a net income of $384.92 million, or 83 cents per share, up from $360.76 million or 82 cents per share a year ago.

On an adjusted basis, Entergy's adjusted profit climbed to 86 cents per share, in line with analysts' average estimate, according to data compiled by LSEG.