Google and Constellation Energy agreed to a sweeping, 20-year nuclear-power deal that would boost output at 11 existing reactors, the latest tie-up between the tech and energy industries to power new data centers. The 890-megawatt power-purchase agreement unveiled by the companies Tuesday involves improvements to Constellation-owned reactors in Illinois, Pennsylvania and New Jersey. The upgrades will provide additional power to the grid that is roughly equivalent to building a new large reactor. The deal is the largest-ever “uprate” project between a nuclear-power provider and a tech company.
Constellation said it plans to invest more than $4.3 billion in the plants. “These are expensive things to be done, and we’ve known that we could do this for a number of years now,” said Joe Dominguez, Constellation’s chief executive. “But it’s really Google stepping up to the plate and providing the financial backing for us to be able to bring on what is effectively a new reactor.” Shares in Constellation rose about 14% in midday trading Tuesday and sparked a rally among other power producers.
Constellation aims to deliver the first uprate project in 2028, while construction on the others continues through 2032 or 2033. Google and Constellation also agreed to a 15-year supply deal for an additional 2,700 megawatts of electricity in the PJM power market. Big technology companies have been trying to secure power for new data centers and have been especially enamored with nuclear power. “The speed to firm, clean power in a responsible way was incredibly important to us,” said Amanda Peterson Corio, global head of energy and power at Google.
Source: Wall Street Journal US Business · Summarized by HeadlinesBriefing