NextEra Energy has agreed to acquire Dominion Energy in an all-stock deal valued at approximately $66.8 billion, creating what companies say will become the world’s largest regulated electric utility by market value.
The massive acquisition comes as U.S. utilities race to meet soaring electricity demand from data centers powering the artificial intelligence boom.
The deal is one of the largest in the American power industry and reflects a growing wave of consolidation among energy companies seeking to capitalize on the rapid expansion of AI infrastructure and cloud computing.
Under the agreement, NextEra will exchange 0.8138 shares of its stock for each Dominion share, valuing Dominion at about $75.97 per share, roughly 23% above its previous closing price.
Following the announcement, Dominion shares surged nearly 15% in premarket trading, while NextEra shares slipped about 2%.
The acquisition gives Florida-based NextEra expanded access to the PJM Interconnection region, including Virginia, home to one of the world’s largest concentrations of data centers.
Dominion’s service territory includes Northern Virginia’s “Data Center Alley,” a major global hub for cloud computing and AI operations. The company reportedly has nearly 51 gigawatts of contracted data-center capacity.
Its customer base includes major technology companies such as Alphabet, Amazon, Microsoft, Meta, Equinix, CoreWeave and CyrusOne.
The transaction also strengthens NextEra’s broader push into energy projects tied to AI growth. Last year, the company signed a deal with Google to reopen a nuclear power plant in Iowa to help meet rising electricity needs.
Industry analysts expect the merger to face intense regulatory scrutiny over concerns related to market concentration, electricity pricing and grid reliability.
The deal will require approvals from the Federal Energy Regulatory Commission, the Nuclear Regulatory Commission and utility regulators in Virginia, North Carolina and South Carolina, as well as shareholder approval.
The companies expect the transaction to close within 12 to 18 months.
Once finalized, NextEra CEO John Ketchum will lead the combined company.
