NextEra Energy plans to buy Dominion Energy for $66.8 billion as the two companies announce the merger will be “the world’s largest regulated electric utility business by market capitalization.”
The all-stock transaction, which is pending regulatory approvals, is one of the largest-ever energy deals. It will create the third-biggest U.S. energy company behind oil majors Exxon and Chevron, and a company with an enterprise value topping the next two U.S. largest power companies combined, according to Reuters.
NextEra CEO John Ketchum said on a call with investors that the enterprise value of the combined NextEra and Dominion company is roughly $420 billion with a market cap of about $249 billion.
“The country needs more energy infrastructure built faster, more efficiently, and more affordably than ever before,” Ketchum said. “Combining two great American companies can better achieve the speed and scale this moment demands.”
READ: Google to revive Iowa’s only nuclear power plant to meet AI energy needs (October 28, 2025)
This comes amid a rising demand for power due for AI data centers. The combined company will deliver electricity to much of the U.S. Southeast, a region with a fast-growing population and the world’s biggest data center hub in Virginia.
“Electricity demand is rising faster than it has in decades. Projects are getting larger and more complex. Customers need affordable and reliable power now, not years from now,” NextEra Energy CEO John Ketchum said.
“We are bringing NextEra Energy and Dominion Energy together because scale matters more than ever— not for the sake of size, but because scale translates into capital and operating efficiencies. It enables us to buy, build, finance and operate more efficiently, which translates into more affordable electricity for our customers in the long run,” Ketchum added.
The companies’ executives said the deal will enable a swifter build-out of power infrastructure to deliver electricity to data centers proposing to connect to NextEra and Dominion, which total about 130 gigawatts of electricity demand. One gigawatt can power about 750,000 homes.
READ: Google to spend $25 billion on AI data centers across largest US electric grid (July 15, 2025)
NextEra will gain access to Dominion’s portfolio, enabling it to expand into the PJM Interconnection region, the largest U.S. power grid operator spanning 13 states.
Dominion Energy stock rose 12% on Monday after announcing the deal.
The two companies have regulatory hurdles to clear before finalizing the deal. The deal should get over the line, according to Melius Research analyst James West, but it will take some time. NextEra and Dominion need antitrust signoff, plus approval from the Federal Energy Regulatory Commission (FERC), Nuclear Regulatory Commission (NRC), and state power commissions in Virginia, North Carolina, and South Carolina, where Dominion operates.