NextEra Energy Inc. is in active discussions to acquire Dominion Energy Inc. in a deal structured mostly as stock, according to a person familiar with the matter. The potential transaction signals how rising electricity demand from data centers is reshaping the utility sector and pushing major players to consolidate.

The acquisition would position NextEra to better serve the booming data center market, where power consumption has surged alongside the AI and cloud computing boom. Dominion brings an extensive grid and customer base, making it an attractive target for NextEra's expansion into that segment.

A stock-heavy structure likely appeals to shareholders wary of dilution while giving NextEra flexibility on pricing. The talks remain in early stages, but the combination could reshape the competitive dynamics between two of the largest U.S. utilities.