Google and Constellation Partner for $4.3 Billion Nuclear Energy Expansion

Google and Constellation Energy have entered into a major 20-year power purchase agreement (PPA) valued at over $4.3 billion. This deal will introduce 890 MW of new nuclear energy capacity to the U.S. PJM grid by the end of 2032. The agreement includes physical and digital upgrades at six nuclear plants in Illinois, Pennsylvania, and New Jersey, enhancing their output without requiring new construction.

Constellation's shares surged more than 14% following the announcement. The upgrades, known as uprates, involve modernizing turbines, steam generators, and digital control systems. These improvements aim to boost capacity while avoiding the lengthy timelines and interconnection issues associated with building new plants.

In addition to the uprate agreement, Google and Constellation have signed a 15-year energy supply agreement for 2,700 MW in PJM's fleet. They also established a 5-year technology alliance, deploying Google Cloud and Gemini Enterprise to optimize plant operations. A strategic framework was agreed upon to explore new clean energy projects, storage, and demand response across the U.S.

Constellation CEO Joe Dominguez highlighted the collaboration as a model for technology companies and the energy sector to responsibly develop the digital economy. Google's recent Environmental Report noted a 37% increase in electricity demand in 2025, but a 2% reduction in Scope 1 and 2 greenhouse gas emissions, credited to its clean energy purchases.