Constellation Energy Shares Jump on $1B Alphabet Nuclear Power Deal

Constellation Energy (NASDAQ:CEG) saw its shares rise 3% in premarket trading after reports surfaced of a major nuclear power agreement with Alphabet (NASDAQ:GOOGL). The multi-year deal, valued at over $1 billion, aims to supply carbon-free electricity to Google’s data centers. This agreement underscores the growing trend among tech giants to secure dedicated nuclear power for their expanding AI-driven operations.

The reported deal highlights the increasing demand for reliable, round-the-clock clean energy among major cloud providers. Constellation Energy, which operates the largest fleet of nuclear power plants in the U.S., would provide electricity to Alphabet under this agreement. Similar long-term power purchase agreements have been secured by competitors to support their AI computing needs.

Following the news, Constellation Energy’s share price reached $275.71. Analysts remain optimistic about the company’s prospects, with 20 of 23 brokerages recommending a buy or higher rating. The median price target among analysts stands at $341.62.