NextEra Energy's $67 Billion Dominion Acquisition Will Make It the Dominant Power Player in the AI Era and a Must-Own Energy Stock

Matt DiLallo, The Motley Fool

Tue, May 19, 2026 at 6:28 AM EDT 5 min read

NextEra Energy (NYSE: NEE) already operates America's largest electric utility (Florida Power & Light) and one of the largest clean energy development companies in the U.S. (NextEra Energy Resources). It's a leader in renewable energy, natural gas, and energy storage.

The utility giant is about to get even bigger. Its recent agreement to acquire Dominion (NYSE: D) will create the world's largest regulated electric utility business. The roughly $67 billion deal will accelerate its earnings growth rate and make it the dominate player in powering the AI era.

Creating a power supermajor

NextEra Energy has agreed to acquire Dominion in an all-stock deal valued at $67 billion. The transaction would combine NextEra's leading electric utility in Florida with Dominion's operations across the fast-growing southeast (Virginia, North Carolina, and South Carolina). The combined company will provide power to over 10 million utility customers across four of the country's fastest-growing states.

The merger will combine NextEra's best-in-class operations and development capabilities with increased scale to create a truly unmatched platform. The massive company will be able to buy, build, finance, and operate more efficiently, saving money over time. It will be the industry leader in nearly every category:

• No.1 in the world in renewables and battery storage.

• No. 1 in the U.S. in gas generation, total generation, generation build, annual capex, rate base, and the largest utility by market capitalization.

• No. 2 in the U.S. in nuclear generation.

All in on AI power

NextEra Energy has grown briskly over the last two decades despite modest growth in electricity demand. U.S. power demand has risen by only about 10% over the last 20 years, as energy efficiency gains have helped slow overall growth. Despite that, NextEra has delivered 9% compound annual adjusted earnings-per-share growth and 10% compound annual dividend growth during that period. However, catalysts like AI data centers will drive a power surge over the next two decades, with U.S. electricity demand expected to grow 60%, a sixfold increase from its growth rate over the past two decades.

NextEra Energy was already in a strong position to capitalize on the power surge. The company expected to invest between $295 billion and $325 billion in cumulative total capex through 2032. That positioned it to deliver 8%+ annual adjusted earnings-per-share growth over that period. It had high confidence in extending that growth rate to 2035. It's investing heavily to support rising power demand growth in Florida, including building out the industry's largest solar energy portfolio.