Dominion Energy Inc

The International Energy Agency projects that electricity demand from AI data centers will more than double between 2024 and 2030, rising from 415 terawatt-hours to 945 terawatt-hours, with demand reaching 1,200 terawatt-hours by 2035, nearly triple the 2024 figure. The IEA noted that AI electricity demand in 2030 will exceed Japan's current power use, and data center electricity use has been growing at 12% per year since 2017, more than four times the overall rate of consumption growth. Among the companies positioned to benefit, Bloom Energy entered 2026 with a product backlog of $6 billion, up 140% over 2025's starting backlog, plus a service backlog of $14 billion. Constellation Energy, one of the largest operators of nuclear power plants in the United States, is already working with AI companies including Meta and Microsoft, while Cameco expects nuclear fuel demand to outstrip supply by the mid-2030s. NextEra Energy is doubling down on AI and data centers with its pending acquisition of Dominion Energy, which holds a monopoly in one of the world's largest data center markets.

NextEra Energy and Dominion Energy announced a "transformational" Virginia benefits package on September 14 to address concerns over their proposed $66.8 billion merger. The Virginia supplier program, worth up to $1 billion annually for five years, will direct spending toward contractors, suppliers, and service providers in the state. The companies also proposed doubling residential bill credits to four years, protecting retail customers from grid costs tied to Northern Virginia's rapidly expanding AI data centers, and committing $100 million toward workforce development in the Commonwealth. NextEra said it plans to add 600 new energy jobs in Virginia, while expecting suppliers to create another 400 positions. The expanded package follows political scrutiny of the deal, including Virginia Governor Abigail Spanberger's statement last month that she would formally intervene in the regulatory review to press for commitments on electric bill affordability, job protections, and clean-energy investments.

Citi says growing political opposition to artificial intelligence infrastructure ahead of the November U.S. midterm elections has not materially weakened the data center construction pipeline. Data center development has become a bipartisan flashpoint, with local governments introducing moratoriums and at least 15 state legislatures proposing tighter regulatory restrictions, yet spending remains strong as AI infrastructure demand continues to support development. The impact has been concentrated among speculative and early-stage projects, which are increasingly delayed or cancelled during local approval processes, while late-stage developments that have already secured sites and grid connections continue to move ahead. Hyperscalers are seeking workarounds to power constraints and local restrictions, with Amazon pursuing direct investment in nuclear development with Dominion Energy and Meta securing a major nuclear power purchase agreement with Constellation Energy. Citi does not expect another market shock comparable to the emergence of DeepSeek, arguing investors have already adjusted to the prospect of highly efficient Chinese models, though it flags a potentially greater risk from governments restricting models deemed too dangerous, which could abruptly create excess computing capacity.

NextEra Energy has reaffirmed its 2026 adjusted EPS guidance of $3.92 to $4.02 and said it is targeting the high end of that range, as it advances a $67 billion all-stock acquisition of Dominion Energy that is expected to close in the second half of 2027. NextEra expects adjusted EPS to grow at a compound annual rate of at least 8% through 2032 and is targeting the same growth rate through 2035 off the 2025 base, while the combined company is expected to deliver 9%+ adjusted EPS growth through 2032 and is targeting the same rate through 2035 off NextEra's 2025 base. The company expects its dividend per share to grow at a roughly 10% annual rate through 2026 off the 2024 base, then 6% a year through 2028 from the 2026 base. To improve the deal's approval chances, the companies submitted an expanded benefits package to Virginia regulators that would double residential bill credits to four years, shield retail customers from grid costs tied to Northern Virginia's AI data centers, and add $100 million to Dominion's low-income bill assistance program through 2038 plus another $100 million for workforce development. If completed, the merger would create the largest US electricity producer, operating the largest natural gas-fired generation fleet in the US and the second-largest nuclear fleet.

Wynson Securities Limited announced continued progress toward the proposed all-stock combination of NextEra Energy and Dominion Energy following shareholder approval of the transaction by both companies on September 3, 2026. The combined company would serve approximately 10 million utility customer accounts across Florida, Virginia, North Carolina and South Carolina, with approximately 110 gigawatts of generation across natural gas, nuclear, renewable energy and battery storage, and more than 80% of its operations regulated. Under the terms of the agreement, Dominion Energy shareholders will receive 0.8138 shares of NextEra Energy for each Dominion Energy share they own, with NextEra Energy shareholders expected to own approximately 74.5% of the combined company and Dominion Energy shareholders approximately 25.5%. The companies have committed to providing $2.25 billion in shareholder-funded bill credits to Dominion Energy customers in Virginia, North Carolina and South Carolina over two years following completion, and have said merger-related costs will not be passed on to customers. The transaction remains subject to approvals from the Virginia State Corporation Commission, North Carolina Utilities Commission, Public Service Commission of South Carolina, Federal Energy Regulatory Commission and Nuclear Regulatory Commission, with closing currently expected in the second half of 2027.

NextEra Energy and Oneok are emerging as key beneficiaries of surging electricity demand from AI data centers, with both offering dividend growth. NextEra Energy, the largest publicly traded electric utility by market cap at over $178 billion, operates Florida Power & Light and the clean-energy developer NextEra Energy Resources, and its proposed $67 billion all-stock merger with Dominion Energy would create the world's largest regulated utility serving more than 10 million customers, expected to close in the second half of 2027 pending regulatory approvals. The company has raised its quarterly dividend for 31 consecutive years, most recently by 10%, yielding around 2.8%. Midstream operator Oneok, with over 60,000 miles of pipelines, recently secured a 1-gigawatt natural gas supply agreement for data centers and is engaged with more than 40 counterparties on similar projects, while its fee-based contracts provide cash-flow stability. Oneok pays a dividend yielding roughly 4.8%, has increased it for three straight years, and has not cut its dividend since 1989.

Dominion Energy is now requiring AI data center developers to provide bank letters of credit to secure large power commitments, a move to screen speculative projects amid surging AI-related electricity demand. The utility aims to limit financial risk for itself and its customer base as grid investment needs grow, converting uncertain demand into committed, financeable projects. The policy supports Dominion's regulated grid model by aligning AI-driven growth with long-term planning and clearer cost recovery, though it may slow or reshape some developments. The stock trades at about $66.8, up 12.8% year to date.

Twelve of the 16 S&P 500 utility companies that reported quarterly results this week surpassed earnings expectations, while 10 beat revenue forecasts and six missed. CenterPoint Energy raised its 10-year capital investment plan by $1.2 billion to $66.7 billion, citing rising power demand in Houston. FirstEnergy forecast 25 gigawatts of total data center demand and reaffirmed its $36 billion five-year plan. Exelon lowered its high-probability data center pipeline to 11 gigawatts from 18 gigawatts and cut its overall future pipeline through 2027 to 25 gigawatts from 43 gigawatts. American Electric Power missed earnings estimates but raised its full-year 2026 operating earnings guidance, and Dominion Energy reaffirmed its 2026 guidance while targeting the final turbine for its Coastal Virginia Offshore Wind project by the end of 2027 at a cost estimate of $11.65 billion.

Dominion Energy reaffirmed all 2026 financial guidance, including operating earnings, credit, dividend, and long-term growth targets, reflecting strong first-half performance. The company reported over 53 gigawatts of data center capacity in various stages of contracting, with approximately 12 gigawatts contracted under electric service agreements, and added 5 gigawatts of contracts since year-end. The Coastal Virginia Offshore Wind project is 81% complete with 31 turbines installed, though the final turbine installation has been delayed by six months to year-end 2027, and the project cost estimate increased by approximately 2% to $11.65 billion. The proposed merger with NextEra Energy is progressing with regulatory filings submitted, and the company expects to deliver $2.25 billion in customer bill credits. Operating earnings were $0.79 per share for the second quarter of 2026, including $0.03 of RNG 45Z credits, while GAAP earnings were $0.37 per share.

A group of five US-listed regulated utilities continues to deliver reliable dividends backed by multi-decade track records. Edison International yields 4.39% with 22 consecutive annual increases, while Dominion Energy holds a 3.78% yield and a $64.7 billion five-year capital plan tied to Virginia data center demand. Northwest Natural Holdings has raised its dividend for 70 consecutive years, and WEC Energy Group has compounded 150% over the past decade with 23 straight increases. Evergy rounds out the list with a 3.23% yield and a $21.6 billion capex plan supporting 6% to 8%+ long-term EPS growth. All five are investment-grade, low-beta, and backed by verifiable dividend records spanning decades.

NextEra Energy reported second-quarter adjusted earnings of $2.4 billion, or $1.15 per share, up 9.5% from a year earlier. Its Florida utility FPL added over 90,000 customers and earned $1.4 billion, while the clean-energy arm NextEra Energy Resources grew earnings more than 18% to about $1.3 billion. The company expects more than 8% compound annual adjusted EPS growth through 2032 and aims to maintain that pace through 2035, supported by 21 gigawatts of large-load interest at FPL and a 35.1-gigawatt backlog at Energy Resources. A planned $67 billion merger with Dominion would create the world's largest regulated electric utility and lift the growth rate above 9% annually. The stock trades at more than 22 times forward earnings, above peers and the S&P 500, but the company's growth and 2.8% dividend yield could still deliver double-digit average annual total returns.

The Motley Fool highlights Enterprise Products Partners, Enbridge, and NextEra Energy as three high-yield dividend stocks with durable competitive advantages and long-term growth prospects suitable for holding through at least 2036. Enterprise Products Partners offers a 5.7% yield supported by a conservative 57% payout ratio from its fee-based pipeline and storage network. Enbridge yields 5.1% and has grown its dividend by an average of 9% annually over 30 years, with 80% of EBITDA protected from inflation. NextEra Energy, yielding 2.8%, is merging with Dominion Energy in a deal worth more than $66 billion, positioning it for data center-driven electricity demand growth and targeting 9% annual earnings growth through 2032.

NextEra Energy plans to spend $59 billion per year in capital expenditures through 2032 following its acquisition of Dominion Energy. The combined company expects the massive outlay to support annualized earnings growth of around 9% or more, up from NextEra's prior standalone projection of 8%. The deal expands NextEra's regulated utility footprint beyond Florida into North Carolina, South Carolina, and Virginia, home to a key data center market, while also scaling its contract solar and wind power business. NextEra intends to maintain its decades-long streak of annual dividend increases, targeting roughly 6% annual dividend growth alongside a current yield of 2.7%.

NextEra Energy and Dominion Energy have filed regulatory applications for a proposed merger that would create the largest regulated electric utility in the United States. The combined company would serve about 10 million customer accounts across four southeastern states, and the merger plan includes $2.25 billion in bill credits for Dominion customers. If approved, the transaction could influence how other utilities approach scale, capital spending, and customer affordability. Regulators are expected to scrutinize the bill credit commitments, the focus on renewable energy and battery storage, and any conditions that might affect the balance between growth projects and customer rates.

NextEra Energy has proposed an all-stock $67 billion merger with Dominion Energy to create the world's largest regulated electric utility. The combined entity would serve more than 10 million customers, have a generation capacity of 110 gigawatts, and a combined rate base of $138 billion, targeting annualized adjusted EPS growth of at least 9% through 2032. The deal would significantly boost NextEra's regulated revenue base, which currently lags Duke Energy's quarterly sales, and position it directly in Virginia's booming data center hub to capitalize on AI-driven power demand. Duke Energy, which recently sold its Tennessee Piedmont Natural Gas business, reported a 17% net income margin for the quarter ended March 31, 2026, while NextEra reported a 31% margin.

Morgan Stanley raised its price target on Dominion Energy from $67 to $69 while maintaining an Equal Weight rating. The adjustment came as part of a broader sector update in which the firm noted that North American regulated utilities fell 5.5% in May, underperforming the S&P 500's 5.1% gain. Separately, Barclays lowered its target by $1 to an undisclosed level on June 23 but kept an Overweight rating. Dominion Energy recently made headlines after reports that NextEra Energy plans to acquire it in a $66.8 billion deal that would create the world's largest regulated electric utility, with closing expected in 12 to 18 months pending approvals.

The U.S. Department of Energy announced it is providing loans to help finance five nuclear projects centered on Westinghouse and its AP1000 reactor. The program aims to shorten manufacturing and delivery times for reactor components by having Westinghouse partner with up to five utilities or energy companies, with each loan supporting two reactors at a project site. Westinghouse will procure needed goods at fixed prices, and each project will be jointly owned by Westinghouse and its partner, with both entities required to commit $500 million in project equity apiece. Westinghouse has signed letters of intent with seven potential partners, though none have been publicly identified. The initiative is expected to benefit nuclear industry players such as Cameco, GE Vernova, Southern, Dominion Energy, and Constellation Energy.