Editor’s note: The story has been updated to include information from the official press release.
Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) has entered into an agreement to buy nuclear energy from Constellation Energy Corp. (NASDAQ:CEG) amid growing demand to power data centers.
The shares of Constellation surged 7.16% to $286.78 premarket on Tuesday.
On Tuesday, Google and Constellation Energy announced a long-term partnership to add 890 MW of new nuclear capacity to the PJM grid, supporting rising electricity demand and improving grid reliability.
The 20-year power purchase agreement will fund more than $4.3 billion in upgrades at 11 Constellation nuclear units across Illinois, Pennsylvania, and New Jersey, boosting efficiency and adding new reliable power to the PJM grid. The project will support about 4,400 existing jobs and create roughly 7,200 construction jobs.
Constellation expanded its nuclear generation plans with a 15-year agreement to supply an additional 2,700 MW to the PJM market. It also expanded its five-year technology alliance with Google Cloud and Gemini Enterprise to use AI to accelerate capacity delivery, optimize power generation and protect critical infrastructure.
AI Boom Revives Interest in Nuclear Energy
The massive electricity requirement for the AI boom has boosted prospects for nuclear energy, which offers continuous emission-free power.
Earlier this month, Amazon.com, Inc. (NASDAQ: AMZN) signed a 20-year power purchase agreement with Constellation Energy to secure nuclear power from Maryland’s Calvert Cliffs plant. Under the deal, Amazon would purchase 690 megawatts of power from Calvert Cliffs, a 1,790-MW nuclear facility and Maryland’s only nuclear power plant.
The agreement is anticipated to support over $3 billion in infrastructure investment in Maryland, which includes about 190 MW of new emissions-free generating capacity expected to be online between 2030 and 2032.
In December, NextEra Energy, Inc. (NYSE: NEE) and Google Cloud expanded their long-standing energy and technology collaboration. The companies committed to developing multiple new gigawatt (GW)-scale data center campuses along with the required generation and capacity.
They also aimed to work together on NextEra Energy’s enterprise-wide digital transformation, using Google Cloud AI and infrastructure to boost the company’s technology innovation and AI deployment.
Price Action: On a year-to-date basis, Constellation Energy declined 24.24%, as per Benzinga Pro. On Monday, it closed 3.93% higher at $267.62.
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