NextEra has agreed to acquire Dominion Energy in an all-share merger carrying a notional enterprise value of $125bn. Dominion shareholders will receive a quarter of the combined company. The deal comes as Dominion's stock has fallen nearly 20% since early 2020, lagging behind rivals in the red-hot "Data Centre Alley" region outside Washington.

Like Constellation Energy's recent $27bn purchase of Calpine, this tie-up is fueled by soaring AI demand. US electricity consumption, long flat at about 4tn kilowatt hours per year, is now expected to surge as power-hungry large language models accelerate growth. NextEra argues the combined entity—with a $420bn enterprise value—can secure better terms on the tens of billions needed for grid modernization.

NextEra shares fell 5% on Monday, signaling shareholder skepticism. The deal also requires Virginia state regulator approval; the companies have already offered more than $2bn in customer bill credits, a common concession in utility mergers. With electricity prices rising sharply, regulators face pressure to keep rates affordable while funding massive data-center expansion and transmission upgrades.