NextEra Energy, Inc. (NYSE:NEE) is reportedly in discussions to combine with Dominion Energy, Inc. (NYSE:D) in a blockbuster deal that could create a roughly $400 billion utility powerhouse.
AI Data Center Boom Reshapes US Utility Industry
The proposed mostly stock-based transaction would unite two of the nation's largest electricity providers as soaring power demand from AI data centers, industrial reshoring and electrification transforms the U.S. energy market, the Financial Times reported on Friday, citing people familiar with the matter.
If completed, the merger would rank among the largest corporate deals in history.
Dominion's footprint in Virginia and the Carolinas would significantly expand Florida-based NextEra's reach, particularly into Northern Virginia's data center alley, a critical hub for AI infrastructure and cloud computing.
NextEra and Dominion did not immediately respond to Benzinga‘s requests for comment.
NextEra Expands Beyond Renewables To Meet Surging Power Needs
NextEra, long known for its renewable energy leadership, has increasingly broadened its strategy under CEO John Ketchum to include nuclear and natural gas as hyperscalers such as Microsoft Corp (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL)Google and Meta Platforms, Inc. (NASDAQ:META) race to secure reliable electricity supplies.
The company has also partnered with Google to restart an Iowa nuclear plant and plans to add at least 15 gigawatts of new generation capacity over the next decade to support data center growth.
Historic Utility Merger Reflects AI Infrastructure Gold Rush
With NextEra's enterprise value near $300 billion and Dominion's around $106 billion, the combination would create unmatched scale in power generation and distribution.
Price Action: NextEra closed at $93.36 on Friday, down 2.42% for the day, then slipped an additional 0.26% in after-hours trading to $93.12, according to Benzinga Pro. Dominion closed at $61.73 during the regular session, down 1.97% and the shares edged slightly lower in after-hours trading to $61.70.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor.
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