NextEra Energy has agreed to acquire Dominion Energy in an all-stock transaction valued at $66.8bn, marking one of the largest private equity-driven power sector consolidations in recent history. The deal, reported by Reuters, will see NextEra chief executive John Ketchum lead the combined entity, which already holds 51 gigawatts of contracted data center capacity. The merger aims to integrate Dominion’s footprint in Virginia’s “Data Center Alley”—home to hyperscalers like Alphabet, Amazon, and Microsoft—into NextEra’s existing energy development portfolio.

The acquisition follows a year of intensified private capital activity, including AES’s $33.4bn sale to GIP and EQT and Constellation Energy’s $16bn purchase of Calpine. These deals reflect surging demand for energy infrastructure tied to data centers, which have driven US power prices up 40% since 2018, according to the US Energy Information Administration. Regulatory hurdles remain, with approvals needed from the Federal Energy Regulatory Commission, the Nuclear Regulatory Commission, and state regulators in Virginia, North Carolina, and South Carolina.

The transaction underscores shifting investor priorities as utilities pivot to meet escalating demand from tech giants. NextEra, already a major player in renewable energy, gains access to Dominion’s PJM Interconnection region—the largest single concentration of hyperscaler demand in the US. Meanwhile, Dominion’s customer roster, including Equinix and CoreWeave, highlights its strategic role in powering digital infrastructure.

This consolidation signals a new era of private equity dominance in US energy markets, with $66.8bn alone shaping the future of grid infrastructure and data center expansion.