Google’s Nuclear Deal Boosts Constellation and Laffont’s $1.2 Billion Bet

Google’s latest deal with Constellation Energy Corp (NASDAQ: CEG) highlights a growing trend in the AI economy: the need for reliable, long-term power sources. The tech giant has signed a 20-year agreement for 3.59 gigawatts of electricity, including 890 megawatts of new nuclear capacity and 2.7 gigawatts from Constellation’s existing PJM fleet. This pact will drive over $4.3 billion in investments across 11 nuclear units in Illinois, Pennsylvania, and New Jersey, with the first additional capacity expected by 2028.

The agreement underscores a critical challenge for AI infrastructure: electricity supply is struggling to keep pace with demand. As data centers proliferate, existing power assets like Constellation’s nuclear fleet become increasingly valuable. Constellation CEO Joe Dominguez emphasized the company’s role in “strengthening the nation’s energy infrastructure” while meeting rising power needs. The company also raised its 2026 adjusted operating earnings guidance to $11.50-$12.50 per share and announced another 920 megawatts of long-term power purchase agreements.

Billionaire Philippe Laffont’s Coatue Management LLC holds a significant stake in Constellation, with 4.63 million shares worth around $1.15 billion as of June 30. While the firm’s 13F filing doesn’t reveal its investment rationale, Coatue’s broader portfolio suggests a focus on AI infrastructure and rising electricity demand, with positions in Alphabet, Amazon.com, Inc. (NASDAQ: AMZN), GE Vernova Inc. (NYSE: GEV), and Eaton Corp (NYSE: ETN).

Despite a 26.93% year-to-date decline, Constellation shares surged nearly 6% in premarket trading following the Google news. The company has secured similar long-term contracts with Amazon, Microsoft Corp (NASDAQ: MSFT), and Meta Platforms, Inc. (NASDAQ: META). The question for investors is whether these agreements can translate into sustained earnings growth and reverse the stock’s recent losses.