Google and Constellation Energy boost nuclear power for AI energy demands

Two nuclear plants in the Philadelphia area are set to increase their power generation under a new deal between Google and Constellation Energy. The agreement aims to address rising energy demands driven by artificial intelligence. Constellation's Limerick Clean Energy Center in Montgomery County will gain 348 megawatts of capacity, while the Salem Generating Station in South Jersey will see a 97-megawatt boost. These upgrades, known as 'uprates' in the industry, are scheduled to take effect between 2028 and 2032.

The project, part of a larger plan to add 890 megawatts to the PJM grid, will cost at least $4.3 billion. Constellation will invest in equipment and technology upgrades at six nuclear sites across Pennsylvania, New Jersey, and Illinois. The upgrades include turbines, steam generators, and digital control systems to improve efficiency and reliability. Google's 20-year power-purchase agreement with Constellation will help fund these improvements.

The deal is expected to sustain about 4,400 existing jobs and create around 7,200 construction jobs. Robert Bair, president of the Pennsylvania State Building and Construction Trades Council, estimated that the Limerick upgrades alone will generate at least 2,500 local construction jobs. Separately, Google also entered a 15-year energy supply agreement with Constellation for an additional 2,700 megawatts from the existing fleet.

Google's commitment to paying for all the power used by its data centers aligns with the White House Ratepayer Protection Pledge. The company also plans to use Google Cloud and Gemini Enterprise to increase efficiency and reduce costs for consumers. This deal follows a similar agreement between Constellation and Amazon, which includes a $3 billion investment and a 190-megawatt increase in generating capacity at Maryland's Calvert Cliffs Clean Energy Center by 2032.