NextEra Energy and Dominion Energy have confirmed plans to merge in an all-stock deal, creating a $420bn power behemoth. The combination puts NextEra at the center of America's AI infrastructure build-out through Dominion's role as the main supplier to "data centre alley" near Washington, home to more than 150 data centers.

Dominion has struggled financially over the past decade, with its stock badly trailing the wider utilities sector and forcing it to freeze its dividend in 2022. NextEra agreed to pay the equivalent of almost $76 a share for Dominion, a 23% premium to its closing price. Dominion shareholders will receive 0.8 shares of NextEra plus quarterly dividends and a $360mn cash payout upon closure.

The path to regulatory approval promises to be contentious as Americans rebel against data center development. Power costs have risen 12% in Virginia and 7% nationally since 2025. NextEra has committed $2.2bn in bill credits to win over regulators. If blocked by regulators, NextEra would owe Dominion a $4.8bn break fee.