Google has signed a 20-year contract with the leading nuclear power plant operator in the U.S. Its stock soared

Google and Constellation Energy announced on Tuesday a 20-year power purchase agreement totaling $4.3 billion. The agreement calls for the addition of 890 megawatts of capacity at several nuclear power plants in the United States. Following the announcement, Constellation Energy’s stock jumped 13%.

The deal with Alphabet will enable Constellation Energy to add new capacity at six operating nuclear power plants in Illinois, New Jersey, and Pennsylvania: the nuclear power provider will modernize the plants, the company said. The work will include upgrading turbines and steam generators, as well as digital control systems.

Google claims that the agreement will provide Constellation with the predictable revenue it needs to invest in the modernization of its 11 reactors. At the same time, Google emphasized that the additional costs associated with the artificial intelligence boom should not be passed on to electricity consumers.

As part of an expanded five-year technology agreement, Constellation will use Google Cloud and Gemini artificial intelligence—for example, to select sites for power facilities, model electricity flows, prepare permitting documentation, and plan grid connections, as well as to monitor equipment condition, manage power plant outages for maintenance, and protect critical energy infrastructure.

Constellation Energy shares jumped 13.9% to $304.8 during trading on October 6 following a Bloomberg report on the deal, reaching their highest price since May 8.

Alphabet shares rose 0.25% on Tuesday.

Google also supports nuclear projects by power producers Georgia Power in Georgia, NextEra Energy in Iowa, and Kairos Power in partnership with the TVA in Tennessee. Major tech companies are increasingly turning to nuclear power in an effort to meet growing electricity demand amid the large-scale construction of AI infrastructure, according to Yahoo Finance.

Other hyperscalers are also purchasing available capacity from energy companies. In January, Amazon entered into an agreement with Constellation for the supply of nuclear power, and Microsoft signed a 20-year contract with the company back in 2024. Under the terms of the contract, Microsoft will receive electricity from one of Constellation’s previously shut-down reactors at the Three Mile Island Nuclear Power Plant, which is scheduled to be restarted by 2028. Amazon also signed an agreement in 2024 to develop and build small modular nuclear reactors with low capacity. Meta is also betting on nuclear power: the company has signed a 20-year contract for electricity supplies from Vistra’s nuclear power plants.

This article was AI-translated and verified by a human editor