The insatiable power demands of AI are turning electric utilities into growth stocks on Wall Street, driving a wave of mergers and acquisitions. This trend could ultimately lead to increased costs for everyday consumers. For example, a significant corporate merger is currently underway to create the largest electric utility in the United States, representing just one instance of many recent consolidation activities within the sector.
A prime example of this trend is NextEra Energy Inc.'s agreement to acquire Dominion Energy Inc. for approximately $67 billion in stock. This acquisition is poised to create a colossal utility company spanning from Florida to the AI data centers concentrated in Virginia. This deal, if approved, would be the largest power acquisition ever.
Bloomberg reports that the scramble for AI's most critical input—power—is accelerating. SoftBank founder Masayoshi Son is seeking a stake in Tokyo Electric Power, seeing control over electricity generation as a strategic advantage for AI data centers. SoftBank is pursuing massive data center projects globally, emphasizing that securing energy is now as crucial as securing chips in the AI race.
