Alphabet nears 1 billion dollar nuclear energy deal with Constellation Energy

Alphabet Inc., the parent company of Google, is reportedly close to finalizing a $1 billion nuclear energy agreement with Constellation Energy. Bloomberg News suggests the deal could be announced within days. This follows a 4% premarket surge in Constellation Energy's shares after the news broke.

The proposed multi-year contract remains unverified by either company, with both Alphabet and Constellation declining to comment. Details about the power capacity and source facilities involved have not been disclosed. The move aligns with a broader trend among tech giants to secure nuclear power for their AI-driven data centers.

Other major tech companies, including Amazon and Microsoft, have already secured similar nuclear energy contracts. Amazon agreed to purchase 690 megawatts from Constellation, while Microsoft committed to power from Pennsylvania’s Three Mile Island facility. Alphabet has previously partnered with NextEra Energy and Southern Company for nuclear energy initiatives.

Analysts maintain a positive outlook on Alphabet stock, with a Strong Buy consensus recommendation and a target price suggesting a 24% upside from current levels. The potential deal highlights the growing reliance on nuclear power to meet the escalating electricity demands of AI infrastructure.