NextEra Energy, a leading power company in the U.S., is engaged in advanced negotiations to acquire Dominion Energy. This potential deal is driven by the increasing need for electricity to support the rapid expansion of artificial intelligence data centers, according to two people familiar with the matter.
The construction of AI data centers by tech giants is fueling electricity demands, which are expected to surge over 20 percent nationwide by 2035. NextEra has actively sought to benefit from this demand, with its shares rising 15 percent this year. Previously, NextEra has secured agreements with companies like Google in Iowa and Meta in New Mexico.
Based in Florida, NextEra holds a market value around $194 billion. Discussions indicate that NextEra would offer roughly eight-tenths of its stock for each Dominion share. This arrangement would result in NextEra shareholders owning approximately 75 percent of the merged entity, including a minor cash compensation.
It’s noted that the specifics of the deal are subject to change, and could fall apart, as stated by individuals who requested anonymity owing to the confidentiality of the talks. Reporting by the Financial Times and Bloomberg have mentioned these discussions and the potential terms.
No comments were received from NextEra or Dominion, headquartered in Richmond, Virginia, regarding the deal. However, this deal would require authorization from federal regulators, adding it to a list of significant business consolidations occurring under the current administration.
Executives are trying to leverage the supposed willingness of agencies to approve mergers under President Trump, hoping for favorable views on mergers ahead of the November midterm elections. Some see these deals as indicators of economic robustness.