NextEra Energy seeks to acquire Dominion Energy in $67 billion deal
NextEra Energy is proposing an all-stock acquisition of Dominion Energy for approximately $67 billion, aiming to create the world's largest regulated electric utility business. This merger is driven by the increasing energy demands of artificial intelligence, with Dominion currently powering numerous data centers in Virginia. The deal, which requires various regulatory and shareholder approvals, would result in a combined company serving about 10 million customer accounts across Florida, Virginia, North Carolina, and South Carolina.
NextEra Energy is seeking to acquire Dominion Energy in an all-stock transaction valued at approximately $67 billion. The proposed merger aims to create the world's largest regulated electric utility business by market capitalization, driven by the escalating energy needs of artificial intelligence data centers across the U.S.
The combined entity would serve about 10 million utility customer accounts across Florida, Virginia, North Carolina, and South Carolina. Dominion, based in Richmond, Virginia, is a significant power provider for hundreds of data centers in the state, in addition to serving 3.6 million homes and businesses. NextEra, headquartered in Juno Beach, Florida, owns Florida Power & Light Company and has a partnership with Google Cloud to develop new data center campuses.
NextEra CEO John Ketchum stated that the merger's scale would lead to capital and operating efficiencies, resulting in more affordable electricity for customers. The combined company will maintain dual headquarters in Juno Beach, Florida, and Richmond, Virginia, and keep Dominion Energy South Carolina's operational headquarters in Cayce, South Carolina.
The deal, already approved by both companies' boards, is expected to close within 12 to 18 months, pending approval from shareholders and various regulatory bodies, including the Nuclear Regulatory Commission. The announcement led to a more than 9.61% jump in Dominion shares, while NextEra's stock fell 5%.