NextEra Energy will buy Dominion Energy in an all-stock deal valued at about $66.8 billion, creating the world’s largest regulated electric utility by market value, reported Reuters. The deal comes as US power companies rush to meet soaring electricity demand from artificial intelligence data centers and cloud computing operations.

The acquisition ranks among the biggest deals ever in the American power sector. It also adds to a growing wave of consolidation in the utility industry as companies try to expand electricity generation and transmission capacity to serve major technology firms.

The rapid expansion of AI services and large-scale data centers has sharply increased electricity demand across the United States. Industry analysts say the trend has reversed nearly two decades of relatively flat power demand growth.

Under the agreement, Florida-based NextEra Energy will exchange 0.8138 shares of its stock for every Dominion share. The offer values Dominion at $75.97 per share, about 23% higher than the company’s previous closing price, according to Reuters calculations.

Dominion shares jumped nearly 15% in premarket trading after the announcement, while NextEra shares slipped about 1.1%.

As of March 31, Dominion carried more than $44 billion in long-term debt, reported Reuters. The combined company will continue operating under the NextEra Energy name after the deal closes.

Why is the deal important for AI boom?

The acquisition gives NextEra a major foothold in the PJM Interconnection region, the largest electricity grid operator in the United States. PJM covers 13 states and includes Virginia, which has become one of the world’s largest data center markets.

Dominion controls electricity infrastructure in Northern Virginia’s “Data Center Alley,” which houses the world’s biggest concentration of data centers, reported Reuters. Major technology companies use the region to run AI systems, cloud platforms, and internet services.

Dominion currently has nearly 51 gigawatts of contracted data-center capacity. One gigawatt can supply electricity to roughly 750,000 homes. Its customers include major tech companies such as Alphabet, Amazon, Microsoft, Meta, Equinix, CoreWeave and CyrusOne.

NextEra has  majorly expanded its energy business to serve rising AI-related electricity demand. In 2025, the company signed a deal with Alphabet’s Google to reopen a nuclear power plant in Iowa to support future energy needs.

The deal also strengthens NextEra’s position as one of the world’s largest energy developers. Through its Florida utility business, the company already provides electricity to more than 12 million people.

Dominion supplies power to around 3.6 million customers across Virginia, North Carolina, and South Carolina, reported Reuters.

What approvals does the merger still need?

The transaction is expected to close within 12 to 18 months. The merger still requires approvals from shareholders, federal regulators, and state utility agencies.

Authorities reviewing the deal include the Federal Energy Regulatory Commission, the Nuclear Regulatory Commission, and utility regulators in Virginia, North Carolina, and South Carolina.

Large power mergers in the United States have recently faced strict regulatory scrutiny. Earlier this year, Constellation Energy agreed to sell several gas-fired power plants as part of regulatory conditions tied to its $16 billion acquisition of Calpine, reported Reuters.

The utility sector has witnessed a sharp rise in mergers and acquisitions because companies expect long-term growth from AI infrastructure. Earlier this year, AES Corporation agreed to a $33.4 billion takeover by investors led by Global Infrastructure Partners and Sweden-based EQT AB, reported Reuters. Last year, Blackstone struck an $11.5 billion deal for TXNM Energy.

US electricity prices have risen nearly 40% over the past five years, according to the US Energy Information Administration. Prices climbed even faster in data-center-heavy regions such as Virginia, Maryland, and Pennsylvania, reported Reuters.

NextEra CEO John Ketchum said the merger would help the company “buy, build, finance and operate more efficiently,” which he said would lead to “more affordable electricity for our customers in the long run,” reported Reuters

The company also promised $2.25 billion in bill credits for Dominion customers in Virginia, North Carolina, and South Carolina over two years after the merger closes.

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