NextEra Energy, one of the country’s largest power companies, is in advanced discussions to acquire Dominion Energy. This deal could significantly impact the power sector as it seeks to meet the growing demand for electricity fueled by artificial intelligence technologies.

Technology firms are expanding their data centers to power A.I. applications, driving a rise in electricity demand. Peak electricity use is projected to surge over 20% nationwide by 2035.

NextEra is looking to capitalize on what its CEO, John Ketchum, describes as “America’s golden age of power demand.” The company, which has seen its stock rise 15% this year, has previously made deals with Google in Iowa and Meta in New Mexico.

Based in Florida, NextEra holds a market value of around $194 billion. The potential deal proposes exchanging nearly eight-tenths of a NextEra share for each Dominion share, according to sources. NextEra’s shareholders would own about 75% of the combined entity and receive a small cash payment.

The deal, which remains subject to change according to sources who requested anonymity due to the confidential nature of the talks, would require federal approval. The Financial Times and Bloomberg have both reported on these discussions.

Dominion Energy, headquartered in Richmond, Virginia, and NextEra have not commented on these discussions.

This prospective agreement is the latest in a string of major deals across various sectors, as businesses attempt to leverage regulatory openness to mergers under President Trump. Some observers believe the administration may favor mergers ahead of the upcoming midterm elections, viewing them as a marker of economic strength.