Alphabet Secures $4.5 Billion Power Deal for AI Data Centers
Alphabet, the parent company of Google (GOOGL), has inked a massive $4.5 billion power deal with Constellation Energy (CEG). The agreement involves Alphabet contracting 3,590 megawatts of electricity to fuel its artificial intelligence (A.I.) data centers. About a quarter of this power will come from nuclear energy, with the remainder supplied by traditional sources.
The deal includes a 20-year power purchase agreement for 890 megawatts from multiple Constellation-owned nuclear power plants. The first batch of nuclear-powered electricity is expected to be delivered to Alphabet in 2028. Constellation Energy plans to invest over $4.3 billion to expand capacity at several of its nuclear reactors across the U.S.
Constellation Energy, which operates America’s largest power grid, is the largest nuclear power plant operator in the U.S. The company also owns a significant fleet of natural-gas-fired power plants. The deal has boosted CEG stock by nearly 10%, though the company’s share price has declined 27% over the past year, currently trading at $267.62 per share.
Alphabet is among several tech companies racing to secure electricity for A.I. data centers. Constellation Energy previously partnered with Microsoft (MSFT) to restart its Three Mile Island nuclear reactor in Pennsylvania. This new agreement with Alphabet underscores the growing demand for reliable and sustainable energy solutions in the tech industry.