NextEra Energy is in advanced talks to acquire rival utility Dominion Energy in a deal that would rank among the largest of the year, according to people familiar with the matter. The companies are discussing a mostly stock transaction that could close as soon as Monday, assuming negotiations don't collapse.

The potential tie-up comes as the AI race drives unprecedented electricity demand growth—something the utility sector hasn't experienced in decades. NextEra, based in Florida, commands a market value of nearly $200 billion, while Virginia-based Dominion carries a valuation of around $50 billion.

A combined entity would become one of the nation's largest utilities, positioning it to capture massive infrastructure investment as data centers and AI facilities scramble for reliable power generation. The deal would reshape competitive dynamics across the U.S. energy market.

The all-stock structure allows Dominion shareholders to exchange their shares for stakes in the merged company, potentially delivering significant value if the combined entity captures the AI-driven power demand boom.