NextEra Energy, North America’s largest electric power and energy infrastructure company, and Dominion Energy (developers and operators of regulated offshore wind and solar power) have agreed to a merger, a move that will result in the formation of the third-largest American energy company behind oil majors Exxon and Chevron.
NextEra Energy will lead the combined company with John Ketchum as its chairman and CEO, while targeting over 9% growth in adjusted earnings per share annually through 2032. Shareholders of NextEra and Dominion will hold approximately 74.5% and 25.5% of the new entity, respectively. The USD 66.8 billion deal, subject to regulatory approvals, will form one of the world’s largest electric utilities, at a time, when due to the AI boom, there has been a massive requirement of energy-intensive data centers, both in the North America and around the world.
“The purchase of Dominion by NextEra, which is already one of the world’s largest energy developers, is the latest in a wave of consolidations of U.S. power companies as the build-out of server warehouses across the country opens up lucrative new revenue streams,” reported Reuters.
Recently, AES Corp agreed to be acquired by a consortium led by Global Infrastructure Partners and Swedish private-equity firm EQT AB for USD 33.4 billion. In 2025, Constellation Energy pulled off a USD 16 billion deal with Calpine, while Blackstone entered into an USD 11.5 billion tie-up with TXNM Energy.
During an investor call, while stating that the enterprise value of the combined NextEra and Dominion company will be roughly USD 420 billion with a market cap of about USD 249 billion, Ketchum said, “The country needs more energy infrastructure built faster, more efficiently, and more affordably than ever before.” Combining two great American companies can better achieve the speed and scale this moment demands.”
The combined company would deliver electricity to much of the US Southeast, a region that has been in prominence for two reasons: a fast-growing population and the world’s biggest data centre hub in Virginia.
“The deal will enable a swifter build-out of power infrastructure to deliver electricity to data centres proposing to connect to NextEra and Dominion, which total about 130 gigawatts of electricity demand. One gigawatt can power about 750,000 homes. NextEra will gain access to Dominion’s portfolio, enabling it to expand into the PJM Interconnection region, the largest US power grid operator spanning 13 states,” the companies’ executives said.
Talking about NextEra, the company, since 2025, has made quite a few strategic moves in terms of tapping into the data centre boom. It signed an agreement with Alphabet’s Google to reopen a nuclear power plant in Iowa, apart from emerging as the developer of two Japan-backed, natural-gas-fired data centre hubs in Texas and Pennsylvania.
Virginia-based Dominion, on the other hand, has nearly 51 gigawatts of contracted data centre capacity and counts Alphabet, Amazon, Microsoft, Meta, Equinix, CoreWeave and CyrusOne as its customers. Its service territory includes Northern Virginia’s “Data Center Alley”, the world’s largest concentration of data centres and one of the fastest-growing electricity markets. While NextEra, through its regulated utility in Florida, provides electricity to over 12 million people, Dominion caters to 3.6 million customers in Virginia, North and South Carolina.