U.S. electricity and energy infrastructure giants NextEra and Dominion Energy announced a merger agreement on Monday, in a deal that will create the world’s largest regulated electric utility business.

The transaction comes as demand for electricity is rising at historical rates, driven by factors including the buildout of datacenter infrastructure to meet growing AI usage, and industrial and transport electrification, creating a need for new capacity, as well as affordability concerns for consumers.

According to the companies, the acquisition will result in the number one company in the world in renewables and battery storage, as well as the number one in the U.S. in gas generation, and number two in the U.S. in nuclear generation. Combined, the companies will serve approximately 10 million utility customer accounts across Florida, Virginia, North Carolina and South Carolina and own 110 GW of generation across energy sources.

The companies also highlighted a 130 GW pipeline of large-load opportunities for the combined entity, and outlined anticipated benefits from the merger including the creation of a broader opportunity set, and scale enabling the combined company to buy, build, finance and operate more efficiently.

NextEra Chairman, President and CEO John Ketchum said:

“Electricity demand is rising faster than it has in decades. Projects are getting larger and more complex. Customers need affordable and reliable power now, not years from now.”

Under the terms of the agreement, Dominion shareholders will receive 0.8138 shares of NextEra Energy for each share of Dominion Energy they own, valuing Dominion equity at approximately $67 billion. The agreement will result in NextEra Energy and Dominion Energy shareholders owning approximately 74.5% and 25.5% of the combined company, respectively.