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May 15 (Reuters) - U.S. power firm NextEra Energy NEE.N is in talks to combine with smaller Virginia-based utility Dominion Energy D.N, a deal that would create a company valued at about $400 billion including debt, the Financial Times reported on Friday, citing sources.

The deal, expected to be structured largely as a stock transaction, could be announced as soon as next week, the report said. Discussions were ongoing, though the talks could still fall apart, it said.

Reuters could not immediately verify the report. The companies did not immediately respond to Reuters' requests for comment outside regular business hours.

U.S. power consumption hit a second straight record in 2025 and is set to climb further over the next two years, driven largely by surging electricity demand from data centers.

Florida-based NextEra, one of the world's largest energy developers, has a market capitalization of $194.69 billion, compared with about $54.29 billion for Dominion, according to LSEG data. A tie-up would create one of the largest power companies in the United States by market value.

The artificial intelligence boom is pushing data-center operators to lock in supply deals with utilities, positioning the sector for stronger profits as the scramble to meet rising load reshapes the power market.