Google Strikes $4.3 Billion Nuclear Power Deal with Constellation Energy
Alphabet Inc., the parent company of Google, has struck a major deal with Constellation Energy Corp. to purchase nuclear power. The agreement involves adding 890 megawatts of new reactor capacity, with the electricity expected to be available on the PJM Interconnection grid as early as 2028. The deal will drive over $4.3 billion in investments to upgrade systems at 11 Constellation reactors across the largest U.S. power grid.
The growing demand for electricity to power artificial intelligence (AI) technologies is reviving interest in nuclear energy. Unlike renewable sources, nuclear power provides around-the-clock, emissions-free energy. However, building new reactors can take over a decade, so recent deals have focused on upgrading existing facilities, a process known as uprates. Analysts Sunaina Ocalan and Raphael Lee from Bernstein highlighted that existing generation and new uprates are the most cost-effective and cleanest options available.
Other tech giants have also entered similar agreements. Amazon recently signed a deal for 690 megawatts of power from Constellation, including upgrades at the Calvert Cliffs nuclear facility in Maryland. Walmart also secured a deal in June for nuclear power from improvements at an Illinois plant. Constellation spokesman Paul Adams noted that with these agreements, the company has few additional facilities left for similar deals.
Google and Constellation also agreed to a 15-year energy-supply deal for an additional 2.7 gigawatts of capacity within PJM. They plan to jointly explore opportunities to develop new generation. Google already has multiple agreements with other atomic power producers, including deals with NextEra Energy and Southern Co. for funding upgrades at atomic plants. Microsoft has also agreed to buy electricity from the shuttered Three Mile Island nuclear plant, which Constellation plans to restart next year.