Electrical utility megamerger is all about the data centers

Key points

• A proposed merger of the largest utility in the country by market value, NextEra Energy, with the sixth-largest, Dominion, would create a megacompany at a time when data centers and rapid increases in electricity demand are reshaping the industry.
• The proposal, announced Monday morning and contingent on state and federal regulatory approval, would result in a company that leads in nearly every aspect of the US power and utility industry, including overall electricity generation, natural gas generation, and renewables.
• The $67 billion deal combines NextEra’s size and reach with Dominion’s positioning as the local utility for the world’s largest concentration of data centers in northern Virginia.
• But the results are likely bad for consumers and the environment, creating a company with enormous financial and political strength that will be difficult to effectively regulate, according to consumer advocates and analysts.
• For perspective, only Exxon Mobil and Chevron would be larger based...