By Blessing Nweke
NextEra Energy will acquire Dominion Energy in an all-stock deal valued at roughly $66.8 billion, creating the world’s largest regulated electric utility by market capitalization as U.S. power companies scramble to meet soaring electricity demand from artificial intelligence-driven data centers.
The transaction marks one of the biggest mergers in the American power sector and underscores a broader consolidation wave sweeping utilities as the rapid expansion of data centers revives electricity demand growth for the first time in nearly two decades.
Under the agreement, NextEra will exchange 0.8138 of its shares for each Dominion share, valuing the Virginia-based utility at $75.97 per share, a premium of about 23% over its previous closing price. Dominion shares surged 14.7% in premarket trading, while NextEra stock slipped 2%.
The acquisition would significantly expand NextEra’s footprint into the PJM Interconnection region, including Virginia, home to the world’s largest concentration of data centers. Dominion’s service territory includes Northern Virginia’s “Data Center Alley,” where major technology firms such as Google, Amazon, Microsoft and Meta operate large-scale facilities.
Dominion currently has nearly 51 gigawatts of contracted data-center capacity and also serves clients including Equinix, CoreWeave and CyrusOne.
The deal follows several major industry acquisitions, including AES Corporation’s $33.4 billion sale to investors led by Global Infrastructure Partners and EQT AB.
Regulators and consumer advocates are expected to closely examine the merger over concerns involving electricity prices, competition and grid reliability. The transaction is expected to close within 12 to 18 months pending shareholder, antitrust and regulatory approvals.
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