NextEra utility merger likely to become next big fight in SC Statehouse

A significant merger between energy companies Dominion and NextEra is progressing in South Carolina, with state regulators on an expedited timeline to approve the deal by late January 2027. This merger is seen as highly consequential for data center development in the state, which is considered an emerging market for such large load opportunities.

Environmental and consumer advocacy groups, including the Conservation Voters of South Carolina and activist Dominion shareholders, are organizing against the merger. They express concerns that the deal, in its current form, is detrimental to customers and the environment, predicting it will lead to more data centers, increased polluting gas plants, and higher utility profits. NextEra CEO John Ketchum has testified that the merger would enhance South Carolina utilities' capabilities and help meet increasing power demand, including for data centers.

Opponents, such as Freeda Cathcart, a Virginia-based Dominion shareholder, worry that the merger is primarily driven by a desire to boost company profits through high-yield investments in information technology like data centers. Concerns have been raised by experts like Marissa Paslick Gillett from the American Economic Liberties Project, who warns of the risks of building extensive infrastructure for AI-driven data center demand that may not materialize, potentially leaving ratepayers to cover the costs.

Despite ongoing legislative efforts to intervene and past contentious dealings between NextEra and South Carolina lawmakers, the Public Service Commission is set to make a final decision by the start of the 2027 legislative session. The state legislature previously failed to come to a compromise on state-level data center regulations, leaving communities to pursue individual moratoriums, while some officials like U.S. Sen. Tim Scott advocate for policies to mitigate risks from speculative power growth.