Constellation Google Nuclear Deal Boosts Grid Capacity
Constellation shares rose about 5% in pre-market trading on Tuesday following a major agreement with Google. The 20-year power purchase deal will add 890 megawatts of new nuclear capacity to the PJM Interconnection grid. The agreement funds upgrades at 11 Constellation-owned nuclear units in Illinois, Pennsylvania, and New Jersey, boosting thermal and electrical efficiency to supply more power to the grid.
The deal supports roughly 4,400 existing jobs and creates around 7,200 new construction jobs. Constellation plans to invest over $4.3 billion in new equipment and technology. Additionally, the companies signed a 15-year energy supply agreement for an extra 2,700 megawatts in PJM's fleet, ensuring continued energy delivery to the market.
Constellation and Google also expanded their five-year technology alliance, adopting Google Cloud and Gemini Enterprise to create an "AI for energy" blueprint. This initiative aims to accelerate capacity delivery, optimize asset dispatch, and protect critical infrastructure. The first uprate under the agreement is expected by 2028, with demand flexibility integration to manage power consumption during high-stress grid events.
Amanda Peterson Corio, global head of energy and power at Google, emphasized the commitment to clean, reliable power. Joe Dominguez, chairman, president, and CEO of Constellation, highlighted the importance of preserving and expanding nuclear capacity to meet growing energy needs affordably.