By Obah Sylva
Shares of Constellation Energy jumped more than 13 per cent on Tuesday after Google agreed to purchase 3,590 megawatts of electricity from the company through long-term power agreements, including power generated by upgraded nuclear reactors on the PJM grid.
Key Highlights
- Constellation Energy shares surged more than 13 per cent following the Google deal.
- Google agreed to purchase 3,590 megawatts of power from Constellation Energy.
- A 20-year agreement covers 890 megawatts from upgraded nuclear reactors.
- Constellation plans to invest more than $4.3 billion to upgrade 11 existing reactors.
- A separate 15-year agreement covers another 2,700 megawatts from Constellation’s nuclear fleet.
- The deal comes as artificial intelligence drives rapidly rising electricity demand from data centres.
Google Signs Long-Term Nuclear Power Agreement
Under the 20-year power purchase agreement, Google will receive 890 megawatts generated through upgrades at 11 existing Constellation nuclear reactors across six sites in Illinois, Pennsylvania and New Jersey.
The companies said the agreement does not involve the construction of new nuclear reactors.
Instead, Constellation will invest more than $4.3 billion in new turbines, steam generators and digital control systems to increase electricity production from its existing facilities.
The first upgraded nuclear unit is expected to begin delivering additional electricity in 2028.
Second Agreement Covers 2,700 Megawatts
A separate 15-year contract will provide Google with another 2,700 megawatts from Constellation’s operating fleet on the PJM electricity grid.
Unlike the first agreement, this portion is not tied to a specific nuclear plant.
The companies said the arrangement will provide Constellation with long-term revenue certainty while its existing nuclear and natural gas facilities continue supplying electricity to the wider market.
AI Boom Drives Demand for More Electricity
The agreements come as technology companies race to secure reliable electricity supplies for rapidly expanding artificial intelligence infrastructure and data centres.
The PJM grid, which serves approximately 67 million people, is facing concerns over the availability of new generation capacity as electricity demand from data centres increases.
The companies described the deal as supporting PJM’s “bring your own power” initiative, under which large electricity users could be required to add generating capacity or face remote disconnection during periods of peak demand.
Constellation Energy Shares Surge
Constellation Energy, the largest nuclear power operator in the United States, closed Tuesday among the strongest-performing companies on the S&P 500.
The stock was reported at around $304.04, representing a gain of more than 13 per cent during the session.
Other major US power producers, including Talen Energy, Vistra and NRG Energy, also recorded gains as investors responded to the growing demand for electricity linked to artificial intelligence and data-centre expansion.
Nuclear Upgrade to Support Thousands of Jobs
Constellation said the planned nuclear upgrades are expected to help sustain approximately 4,400 existing jobs while creating around 7,200 temporary construction jobs.
Amanda Peterson Corio, Google’s global head of energy and power, said the company was committed to supporting its growth while investing in additional electricity capacity.
The agreement will also involve the use of Google Cloud and Gemini artificial intelligence tools in Constellation’s operations.
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Constellation Expands Technology Partnerships
The Google agreement is the second major long-term nuclear power deal Constellation has announced with a technology company within a week.
The company recently reached an agreement with Amazon covering nearly 690 megawatts, including a proposed roughly $3 billion expansion of the Calvert Cliffs nuclear plant in Maryland.
That project is expected to add approximately 190 megawatts of capacity, with the additional electricity projected to become available between 2030 and 2032.
Google has also entered other nuclear energy arrangements, including support for plant upgrades in Georgia, a plan with NextEra Energy to restart the Duane Arnold nuclear reactor in Iowa, and an electricity offtake agreement with Kairos Power.
The latest agreement underscores the growing push by major technology companies to secure long-term, reliable electricity supplies as artificial intelligence and data-centre operations continue to expand.
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