NextEra Energy said Monday it will acquire Dominion Energy in an all-stock deal valued at about $67 billion, combining two major utilities as electricity demand surges from AI and data center growth.

The all-stock transaction will create the “largest regulated electric utility” in the world, the companies said Monday. NextEra Energy shareholders will own approximately 74.5% of the company while Dominion shareholders will own 25.5%. 

The combined company, which will operate under the name NextEra Energy, will serve around 10 million utility customers across Florida, Virginia, North Carolina and South Carolina, according to a statement from NextEra Energy. The deal is expected to close in mid-to-late 2027.

The announcement comes as technology companies race to build data centers across the country to support the AI boom, driving up electricity demand at a time when consumers are already facing higher energy costs.

Electricity costs rose 6.1% in April from a year earlier, according to the latest inflation data. Virginia, one of the states the company will serve, is home to hundreds of data centers.

What does this mean for rate payers?

NextEra and Dominion contend that combining operations will also allow them to meet rising electricity demand while keeping customers’ bills affordable. As part of the deal, the companies said they would offer Dominion customers in Virginia, North Carolina and South Carolina a total of $2.25 billion in credits over two years. 

“Electricity demand is rising faster than it has in decades. Projects are getting larger and more complex,” John Ketchum, president and CEO of NextEra Energy, said in a statement. “Customers need affordable and reliable power now, not years from now.”

While NextEra is touting $2.25 billion in one-time bill credits to Dominion customers, Clean Virginia, a nonprofit focused on energy affordability, warned that the headline figure would amount to a temporary payout, rather than ongoing relief for their monthly bills.

The group also said NextEra has not committed to lowering its return on equity, or ROE, which helps determine how much profit utilities can earn on regulator-approved investments included in their rate base.

“Because utilities earn profits on their rate base, rapid growth can drive higher long-term costs for customers unless the utility’s [ROE] — the utility’s allowed profit rate — is meaningfully reduced,” Clean Virginia said.