PwC Power & Utilities: Rising Valuations and Strategic Mergers in the Age of Digital Infrastructure
The grid may not be ready for AI in its full glory, but the expected demand is driving skyrocketing valuations for power generation resources, according to a new PwC power and utilities report.
Grid constraints are pushing hyperscalers to invest in potential new or restarted power generation in ways never seen before. These include Microsoft’s long-term deal with Constellation to reopen Three Mile Island I as the renamed Crane Energy Center, and comparative electricity supply deals by Meta and Google, which is acquiring generation developer Intersect Power.
Excluding Google’s acquisition of Intersect Power, there were six renewable-focused M&A transactions in the last six months for a combined deal value of $10.7 billion, down 14% from $12.4 billion across eight transactions in the prior comparable period.
Consulting firm PwC (formerly known as PriceWaterhouseCoopers) also noted that these load pressures are causing the utility sector to consider a new round of consolidation. For instance, utility holding company NextEra Energy is aiming to acquire Virginia-based Dominion Energy for $67 billion, potentially creating a mammoth utility and power generation developer worth about $420 billion in enterprise value and $250 billion in market capitalization.
This deal helped raise the first half of 2026 power and utilities mergers & acquisitions (M&A) by 173% compared to the same five months last year, elevating M&A activity to $216 billion across 23 transitions. The new landscape around digital infrastructure demand could spur even more consolidations, PwC reported.
“Acquirers are focused on funding growth, scaling platforms, modernizing infrastructure, strengthening grid resiliency, and leveraging platform capabilities to capture emerging growth opportunities and while positioning themselves to serve hyperscale customers across multiple jurisdictions,” Kenyon Willhoit, power and utilities deal principal at PwC US, said in the report statement.
Free-market advocates talk about not picking winners and losers in energy or other sectors, but the Trump Administration’s One Big Beautiful Bill Act (OBBBA) accelerated the phasing out of long-time production and investment tax credits for renewable energy projects.
At the same time, the administration has pushed for greater exploration and investment in fossil fuel assets which can power flexible and baseload generation.
Many hyperscalers and other data center developers are weighing the benefits of building behind-the-meter, microgrid or co-located power generation to jump over utility interconnection delays. Others, such as Amazon Web Services, are currently focused on working directly with utilities and staying in front of the meter or grid connected.