NextEra Energy and Dominion Energy cleared a critical milestone in their $66.8 billion merger on September 3 when shareholders of both companies voted overwhelmingly to approve the all-stock transaction. The deal, which would create the world's largest regulated electric utility, now enters a lengthy regulatory review process that will determine whether the combination moves forward or joins the growing list of abandoned 2026 megamergers.

Dominion shareholders cast 671.32 million votes in favor of the merger at a special meeting, representing strong support for the transaction that will see NextEra acquire Dominion's Virginia franchise and related assets. NextEra shareholders approved the deal by similar margins, paving the way for what executives have characterized as a transformational combination designed to power America's artificial intelligence infrastructure buildout.

The shareholder approvals mark the end of the easy part. The merger now faces scrutiny from the Federal Energy Regulatory Commission, the Virginia State Corporation Commission, and potentially other state regulators whose approval is required before the companies can close the transaction. Legal and regulatory experts estimate the review process could take eighteen to twenty-four months, with no guarantee of success.

The AI Data Center Angle That Drove the Deal

NextEra executives framed the Dominion acquisition as an infrastructure play aimed at capturing growth in Virginia's Data Center Alley, the concentration of data centers in Northern Virginia that hosts much of the internet's cloud computing capacity. The region has become ground zero for artificial intelligence infrastructure investment as tech companies race to build the computing power needed for large language models and other AI applications.

Dominion Energy's Virginia franchise serves most of the Data Center Alley footprint, providing electricity to facilities operated by Amazon Web Services, Microsoft Azure, Google Cloud, and dozens of smaller providers. Power demand from these data centers has grown at double-digit annual rates for the past five years, with AI workloads expected to accelerate that trend as models grow larger and more computationally intensive.

NextEra's existing business focuses on renewable energy generation and Florida utility operations, making Dominion's Virginia assets a strategic complement rather than an overlap. The combined company would serve 7.6 million electric customers across Florida, Virginia, and surrounding states while also operating the nation's largest fleet of wind and solar generation facilities.

Dominion's Virginia Weakness Becomes NextEra's Opening

Dominion has struggled in recent years to keep pace with power demand growth in Virginia while managing an aging generation fleet and transmission infrastructure that requires billions in capital investment. The company's 2025 integrated resource plan projected $68 billion in infrastructure spending through 2040 just to maintain service reliability and meet projected load growth.

Those capital needs created an opening for NextEra, which brings a stronger balance sheet and lower cost of capital to the table. NextEra's utility operations in Florida consistently rank among the nation's most reliable and lowest-cost, giving the company credibility with regulators who will ultimately decide whether the merger serves customers' interests.

Critics of the merger question whether a Florida-based utility can effectively manage Virginia's unique challenges, particularly the rapid data center growth that shows no signs of slowing. Virginia regulators will likely probe NextEra's plans for maintaining service quality and investing in grid modernization as data center operators demand ever-more reliable power with minimal interruption risk.

The Regulatory Gauntlet That Could Derail Everything

FERC approval requires the merger to meet a public interest standard that considers market competition, rates, and reliability. The commission has historically been skeptical of utility mergers that reduce competition or concentrate too much market power, though the NextEra-Dominion deal involves geographically distinct service territories that limit competitive concerns.

Virginia's State Corporation Commission wields significant authority over the transaction given Dominion's status as the state's dominant electric utility. The commission must find that the merger serves Virginia customers' interests, considering factors like future rates, service quality, and infrastructure investment commitments. Consumer advocates have already signaled they will scrutinize whether NextEra commits to maintaining Dominion's existing investment plans or attempts to redirect capital elsewhere.

The companies announced the merger in June 2026 at an all-stock valuation of $66.8 billion, representing a 28 percent premium to Dominion's pre-deal trading price. NextEra structured the transaction to issue 0.89 shares of NextEra common stock for each Dominion share, giving Dominion shareholders roughly 35 percent ownership of the combined company.

Wall Street Divided on Whether This Gets Done

Utility merger analysts remain split on the transaction's likelihood of clearing regulatory review. Supporters point to the strategic logic of combining NextEra's renewable generation expertise with Dominion's Virginia customer base, particularly given the AI infrastructure growth story that underpins the deal thesis.

Skeptics note that Virginia regulators have historically been protective of Dominion's independence and may resist allowing a Florida utility to acquire control of the state's power grid. The commission rejected similar consolidation proposals in past decades, though those deals involved different competitive dynamics and regulatory considerations.

The timeline uncertainty creates risk for both companies' shareholders. NextEra's stock has traded sideways since the deal announcement as investors await regulatory clarity, while Dominion shares continue to trade at a discount to the merger consideration, reflecting market skepticism about completion prospects.

What the Combined Company Would Look Like

The merged entity would serve 7.6 million electric and gas customers across multiple states while operating approximately 75 gigawatts of renewable generation capacity. NextEra Energy Resources, the company's unregulated renewable development arm, would continue building wind and solar projects under the merged structure.

Dominion's natural gas transmission and storage business would remain part of the combined company, though NextEra executives have indicated they may explore strategic alternatives for those assets post-merger. The gas infrastructure generates stable cash flows but doesn't align with NextEra's renewable energy focus and could attract interest from infrastructure funds or other utilities.

Headquarters decisions remain under discussion, with NextEra's Juno Beach, Florida location serving as the combined company's primary base while Dominion's Richmond operations maintain a significant regional presence. Job retention commitments in Virginia will likely be part of regulatory negotiations as the State Corporation Commission evaluates the merger's local economic impact.

The shareholder approvals give NextEra and Dominion the mandate to pursue the merger through the regulatory process. Whether that process concludes with a successful combination or a terminated deal depends on regulators' assessment of whether the transaction truly serves the public interest. The next eighteen months will determine if the world's largest electric utility merger actually happens or becomes another footnote in 2026's wave of abandoned megadeals.