NextEra Eyes $400B Merger With Dominion Amid AI Data Center Power Boom: FT
US utility giant NextEra Energy (NYSE: NEE) is reportedly in talks to combine with rival Dominion Energy (NYSE: D) in a deal that could create a $400 billion power company as surging electricity demand from AI data centers reshapes the U.S. energy landscape.
According to a report by the Financial Times on Friday, the talks could result in one of the largest mergers in corporate history and may be announced as soon as next week. The discussions are ongoing and could still collapse, the report said, adding that the transaction is expected to be structured largely as a stock deal.
The tie-up would combine two of the largest U.S. electricity providers at a time when hyperscalers and AI firms are racing to secure long-term power supplies for increasingly energy-intensive data centers.
Financial Times reported that the merger would expand NextEra’s footprint from its stronghold in Florida into Virginia and the Carolinas through Dominion’s regulated utility operations. Virginia, particularly Northern Virginia’s “Data Center Alley,” has become a focal point of AI infrastructure expansion due to its dense concentration of data centers and fiber connectivity.
NextEra has an enterprise value of roughly $303 billion, including about $100 billion in net debt, while Dominion’s enterprise value stands near $111 billion, including approximately $50 billion in debt, according to FactSet data cited by the FT.
The potential deal underscores how AI-driven electricity demand is increasingly influencing utility strategy and consolidation. Utilities and independent power producers have been repositioning portfolios to capture expected growth from AI infrastructure, industrial reshoring and broader electrification trends.
The report also highlights how NextEra Chief Executive John Ketchum has shifted the company’s strategy from a renewable-heavy approach toward an “all forms of energy” model that includes natural gas and nuclear power to meet rapidly rising electricity demand from data centers.
NextEra has already moved aggressively to align itself with the AI infrastructure boom. Last year, the company signed an agreement with Google to restart a nuclear plant in Iowa that had been offline for five years to supply power for the tech giant. The company has also said it plans to develop at least 15 gigawatts of new power generation capacity for data centers over the next nine years.
Separately, NextEra joined a consortium last year alongside BlackRock, Microsoft, Nvidia and xAI focused on expanding energy infrastructure to support AI data center growth.
