NextEra Energy to buy Dominion in deal that unites two key players in race to power AI data centers

NextEra Energy announced its acquisition of Dominion Energy in an all-stock deal valued at nearly $67 billion. This merger aims to combine two major utility players to meet the escalating electricity demands driven by artificial intelligence data centers across the United States. Dominion Energy currently serves the world's largest data center market in northern Virginia, while NextEra Energy is recognized as the largest renewable energy developer in the U.S., with significant natural gas and nuclear generation assets.

The combined entity, which will operate under the NextEra Energy name, is projected to become the largest regulated electric utility globally, boasting a market capitalization of $249 billion. NextEra CEO John Ketchum emphasized the critical need for scale to address the fastest rise in electricity demand in decades. He stated that the combined company can become the "go-to partner for large load customers," specifically referring to tech companies developing extensive data center projects.

NextEra plans to develop over 30 data center hubs across the U.S. to accommodate AI-driven power needs. Beyond its renewable portfolio, NextEra has also invested in natural gas and is a key player in nuclear energy expansion, including a prior deal with Google (Alphabet) to reactivate the Duane Arnold nuclear plant in Iowa. The companies anticipate becoming global leaders in renewables and battery storage, and significant players in natural gas and nuclear power generation.

Under the new structure, NextEra shareholders will hold 74.5% ownership, with Dominion investors retaining 25.5%. John Ketchum will continue as CEO, while Dominion CEO Robert Blue will lead the regulated utilities business and join the board. Following the announcement, Dominion's shares rose by nearly 11%, while NextEra's stock saw a more than 4% decline.