Google Invests Billions to Boost Nuclear Power for Data Centers

Google has struck a deal to upgrade six nuclear power plant sites across the US, aiming to boost electricity generation for its energy-intensive data centers. The tech giant signed a 20-year agreement with Constellation, the largest nuclear power operator in the country. The deal guarantees revenue to cover efficiency upgrades and represents over $4.3 billion in new investment by Constellation. Over the next five years, the updates are expected to add 890 megawatts of nuclear capacity, equivalent to one large reactor or three small modular reactors.

The reactors, located in Illinois, Pennsylvania, and New Jersey, are connected to the PJM Interconnection grid, the largest in the US. PJM has faced challenges meeting demand from AI data centers, with concerns about potential blackouts and rising electricity costs. In January, state leaders called for an emergency power auction to support new power plants, but PJM postponed it last week following FERC’s directive to revise its proposal.

Alongside the nuclear deal, Google also secured a 15-year energy supply agreement with Constellation to support other power plants within PJM. Nuclear energy accounted for 70% of Constellation’s generating capacity last year, with renewables at 8%, and gas and oil making up the remainder. Despite these efforts, data centers are driving a surge in new gas infrastructure projects, pushing tech companies further from their sustainability goals. Google’s carbon emissions rose by 18% last year, alongside a 37% jump in electricity demand.