Constellation and Google partner on 890 MW nuclear capacity expansion

Constellation Energy (CEG) shares rose 7.2% in pre-market trading on Tuesday following the announcement of a long-term energy partnership with Google (GOOG, GOOGL). The collaboration aims to bring 890 MW of new nuclear capacity onto the PJM Interconnection grid, addressing growing demand and enhancing grid reliability. The first phase of the project, known as an uprate, is expected to be completed by 2028.

The agreement includes a 20-year power purchase deal, which will fund investments totaling more than $4.3 billion in new equipment and technology across 11 Constellation-owned nuclear units in Illinois, Pennsylvania, and New Jersey. In addition, the companies have entered into a 15-year energy supply agreement for an additional 2,700 MWs within PJM's fleet, ensuring continued energy delivery to the market.

Constellation has also selected Google Cloud and Gemini Enterprise under an expanded five-year technology alliance. The partnership will leverage AI to reduce infrastructure costs, improve performance, meet rising energy demands, and safeguard the energy grid. Amanda Peterson Corio, Google's global head of energy and power, highlighted that the agreement will strengthen the PJM grid, which serves 67 million people, while protecting energy affordability and supporting local union jobs.