NextEra, Dominion want to create a massive power company as AI drives energy demand in the US

NextEra Energy announced plans to acquire Dominion Energy in an all-stock deal valued at approximately $67 billion, creating the world’s largest regulated electric utility by market capitalization. The merger, pending shareholder and regulatory approvals, aims to address growing energy demands driven by artificial intelligence data centers. The combined entity will serve around 10 million utility customers across Florida, Virginia, North Carolina, and South Carolina, integrating Dominion’s operations in Virginia, North Carolina, South Carolina, and NextEra’s Florida Power & Light Company. The deal follows NextEra’s December partnership with Google Cloud to expand data center campuses nationwide. Dominion currently powers hundreds of data centers in Virginia and provides electricity to 3.6 million homes and businesses in three states, along with natural gas service to 500,000 customers in South Carolina. NextEra, based in Juno Beach, Florida, serves 12 million people through Florida Power & Light. The merger faces opposition from lawmakers and officials in six states, including Arizona and New York, who argue rising electricity bills burden consumers amid AI-driven demand. Dominion shareholders will receive 0.8138 NextEra shares per Dominion share, retaining current dividends plus a $360 million cash payment at closing. NextEra shareholders will hold 74.5% of the combined company, with Dominion shareholders owning 25.5%. John Ketchum, NextEra’s CEO, stated the merger would improve capital and operating efficiencies, lowering long-term electricity costs. The new company will operate under NextEra’s name and "NEE" ticker, with dual headquarters in Florida and Virginia, while retaining Dominion’s South Carolina operations. Regulatory approvals, including from the Nuclear Regulatory Commission, are required before the deal closes in 12–18 months. Shares reacted sharply: Dominion’s stock rose 9.61%, while NextEra’s fell 5%. The merger reflects broader industry shifts as AI demand reshapes energy infrastructure, though political and regulatory hurdles remain.