Google Oracle deals boost US nuclear grid capacity with long-term investments

Google and Constellation Energy have announced a major collaboration to enhance the PJM Interconnection grid with 890 MW of new nuclear capacity. The 20-year power purchase agreement will fund upgrades at 11 nuclear units across Illinois, Pennsylvania, and New Jersey, creating jobs and driving over USD4.3 billion in new investments. The improvements will boost thermal and electrical efficiency, adding grid capacity equivalent to several small modular reactors or a large conventional reactor. The initiative aligns with the US government's UPRISE program, aiming to maximize existing nuclear infrastructure through public-private partnerships.

Google and Constellation have also signed a 15-year energy supply agreement for an additional 2,700 MW, ensuring economic viability for existing assets. They plan to explore new clean generation, storage, and demand response opportunities across the US, with a focus on the PJM region. Constellation will leverage Google Cloud and Gemini Enterprise to use AI for reducing infrastructure costs and improving grid performance. The first uprate is expected by 2028, with Google emphasizing the importance of clean, reliable power for its growth.

Separately, Oracle has committed to subscribing to output from Wisconsin's Point Beach nuclear power plant. This deal, subject to regulatory approval, aims to shield customers from rising costs and sustain reliable power for the Wisconsin grid. Oracle's investment supports its broader Project Lighthouse data center development, which promises significant economic benefits and job creation in the region. The tech giant will fully fund the project's energy costs to protect ratepayers and support grid reliability.