NextEra-Dominion Deal Signals Era of AI Utility Mega-Mergers

NextEra Energy Inc.’s $67 billion deal for rival Dominion Energy Inc., the largest utility acquisition in US history, suggests even the industry’s biggest companies need to grow in order to accommodate the power demand driven by artificial intelligence.

Utilities and grid operators in the US are expected to invest more than $1.1 trillion over the next five years on new generation and transmission projects. That spending wave is increasing pressure to gain scale and financial heft, even for companies like NextEra, the largest US utility by market value and biggest renewable-energy developer.