NextEra Energy’s massive $67 billion deal to acquire Virginia-based Dominion, announced on May 18, will effectively build the world’s largest utility in a bid to dominate the AI data center boom. It’s a goal big enough that NextEra was willing to pay a hefty premium—and risk overpaying—to make it happen.
On a call with analysts, NextEra chairman and CEO John Ketchum said the acquisition was necessary to create a player big enough to satisfy enormous and fast-growing demand for electricity. He emphasized the combined scale needed to build power projects more quickly and affordably to accommodate hyperscalers, increased electrification, population growth, and more. The two companies’ combined construction backlog of 130 gigawatts exceeds their existing power generation, Ketchum said. That represents enough electricity to power 100 million homes—out of roughly 150 million in the entire U.S.
“Our country is at an inflection point. The demand for electricity is increasing unlike anything we’ve seen in generations,” Ketchum said on a call with analysts. “Today, energy infrastructure projects are larger and more complex than ever before. Practically every corner of America needs power solutions, not someday, but right now.”
