Constellation Stock Jumps 7% on $4.3 Billion Google Nuclear Energy Deal

Constellation Energy Corp. (CEG) saw its stock rise 7.16% to $286.78 in premarket trading on Tuesday following a major deal with Alphabet Inc. (GOOG, GOOGL). The agreement involves Google purchasing nuclear energy from Constellation to power its data centers, a move driven by the growing demand for reliable electricity in the AI boom.

The partnership includes a 20-year power purchase agreement to add 890 MW of new nuclear capacity to the PJM grid. This deal will fund over $4.3 billion in upgrades at 11 Constellation nuclear units across Illinois, Pennsylvania, and New Jersey. The project is expected to support about 4,400 existing jobs and create roughly 7,200 construction jobs.

Constellation also expanded its nuclear generation plans with a 15-year agreement to supply an additional 2,700 MW to the PJM market. Additionally, it extended its five-year technology alliance with Google Cloud and Gemini Enterprise to use AI for optimizing power generation and protecting critical infrastructure.

The surge in electricity demand due to the AI boom has renewed interest in nuclear energy, which provides continuous, emission-free power. Earlier this month, Amazon.com, Inc. (AMZN) signed a similar 20-year power purchase agreement with Constellation Energy to secure nuclear power from Maryland’s Calvert Cliffs plant, investing over $3 billion in infrastructure.