Google Powers Up Georgia Nuclear Plants to Fuel AI Boom

Google has made a significant move in Georgia by striking a deal with The Southern Company's Georgia Power to boost its capacity at two nuclear plants. The company will finance upgrades for reactors at Vogtle and Hatch plants, adding 96 MW of new capacity to the electric grid. These upgrades will support the construction of new data centers, while Google's funding will shield Georgia Power's residential and industrial customers from those expenses.

Two other industrial stocks that could benefit from this deal are GE Vernova and Brookfield Renewable Corporation. GE Vernova, the former energy division of General Electric, has a massive presence at Georgia Power's Hatch plant, where it provides reactor services, engineering support, and nuclear fuel advancements. The growth of its Power segment's orders is expected to be boosted by any major upgrades at Hatch.

Brookfield Renewable Corporation also stands to gain from the deal, as it acquired Westinghouse Electric Company three years ago, which built the pressurized water reactors used across all four units at Vogtle plant. Brookfield and its affiliates took a 51% stake in Westinghouse, while Cameco controlled the remaining 49%. Any major upgrades at Vogtle should generate tailwinds for Westinghouse and boost Brookfield's earnings.

However, investors are advised not to assume that Google's deal with Georgia Power will drive more investors toward GE Vernova or Brookfield Renewable. The state regulators in Georgia still need to approve the massive deal amid swelling protests against AI and data centers, and it will take at least a few years to uprate both plants.