Google and Constellation Energy Sign Major Nuclear Power Deal

Google's parent company, Alphabet Inc., has struck a 20-year deal to purchase nuclear power from Constellation Energy Corp. The agreement, announced on Tuesday, involves 890 megawatts of new power set to come online. Constellation plans to invest over $4.3 billion to build out this capacity, which will be integrated into the PJM Interconnection grid, the largest transmission operator in the U.S.

The surge in electricity demand driven by the artificial intelligence boom is reviving interest in nuclear energy. Nuclear power offers reliable, emissions-free energy, making it an attractive option for tech companies building data centers. Recent deals have focused on existing facilities, as new reactors can take over a decade to permit and construct. The next generation of fission technology remains years away from widespread use.

Constellation's shares rose 6.3% in pre-market trading on Tuesday, while Alphabet's stock increased about 0.4%. This follows a similar deal Amazon.com Inc. made last week with Constellation, agreeing to buy 690 megawatts of power, including upgrades to the Calvert Cliffs nuclear facility in Maryland.

Google has previously secured agreements with other nuclear power producers. Last year, it agreed to buy electricity from NextEra Energy Inc., supporting the restart of the Duane Arnold reactor in Iowa. Additionally, Microsoft Corp. plans to purchase electricity from the shuttered Three Mile Island nuclear plant, which Constellation aims to restart in Pennsylvania next year.