Washington DC - US energy giants NextEra Energy and Dominion Energy announced Monday they will combine to create the world's largest regulated electric utility and help power surging demand from artificial intelligence data centers.

The combined entity will serve approximately 10 million utility customer accounts across Florida, Virginia, North Carolina, and South Carolina, and will provide 110 gigawatts of generating capacity.

NextEra is currently the biggest renewable energy developer in the US and the largest utility in the S&P 500, while Dominion is the utility responsible for powering the world's largest concentration of data centers in Northern Virginia.

"Electricity demand is rising faster than it has in decades," said NextEra chairman and CEO John Ketchum, who will lead the combined company.

"Projects are getting larger and more complex. Customers need affordable and reliable power now, not years from now."

The deal comes as rising demand for electricity from data centers has put utility companies in the spotlight, with tech firms racing to connect their facilities to the power grid amid widespread concern that the buildout will drive up electric bills for households.

The companies said the deal, which creates the world's largest by market capitalization, is expected to close within 12 to 18 months, pending shareholder approval and sign-off from regulators.