NextEra Energy said on Monday that it will purchase Dominion Energy for nearly $67 billion to combine two of the largest utilities in the United States.
According to the companies’ joint press release, the transaction was unanimously approved by both the Dominion and NextEra boards and is expected to close in 12 to 18 months. The timeline is subject to customary regulatory and shareholder approvals.
Both utilities own and operate several nuclear power plants predominantly in the eastern half of the country. NextEra also owns two midwest power plants in Point Beach in Wisconsin and Duane Arnold in Iowa.
When the merger is completed, NextEra shareholders will own 74.5% of the merged company, while Dominion shareholders will own the rest. The combined company will operate under the NextEra name and trade on the New York Stock Exchange under the ticker symbol NEE.
The combination of the company will be more than 80% regulated, serve nearly 10 million utility customer accounts across Florida, North Carolina, South Carolina and Virginia and own 110 gigawatts of generation across a mix of various energy sources, according to the release.
NextEra CEO John Ketchum will serve as the chairman and CEO of the combined company. Dominion President and CEO Robert Blue will serve as president and CEO of regulated utilities and as a member of the board of directors.
The large U.S. utilities came together to meet growing energy demands amid the rise of artificial intelligence (AI) data centers and advanced manufacturing. Dominion, headquartered in Richmond, Va., is the utility that powers the AI data centers in Northern Virginia. According to the Northern Virginia Regional Commission, Northern Virginia’s 250-plus data centers handle roughly 70% of global internet traffic.
“This is a historic moment for our two companies and for the states we are privileged to serve,” Ketchum said. “Electricity demand is rising faster than it has in decades. Projects are getting larger and more complex. Customers need affordable and reliable power now, not years from now.”
In the companies’ joint Monday investor call, Ketchum said that NextEra’s ability to build at scale and its operational platform and combining it with another industry leader in Dominion unlocks an opportunity to expand their collective growth and meet incoming energy demands.