Google Signs 20-Year, 3.6-GW Nuclear Power Deal with Constellation Energy, Stock Surges 12%

Google and Constellation Energy announced a sweeping nuclear power agreement on Tuesday that combines two contracts totaling roughly 3,600 megawatts on the PJM Interconnection grid, the largest power market in the United States. The centerpiece is a 20-year deal under which Constellation will add 890 MW of new nuclear generation capacity through uprate upgrades at 11 existing reactor units located in Illinois, Pennsylvania and New Jersey, backed by more than $4.3 billion in investment. The first uprate is expected to come online in 2028, with capacity ramping through 2032. The Wall Street Journal described the project as the largest-ever nuclear uprate agreement between a power provider and a technology company.

A separate 15-year supply agreement covers an additional 2.7 GW of existing nuclear output, bringing the combined deal to roughly 3.6 GW. Analysts at Briefing.com noted the arrangement reinforces two distinct opportunities for Constellation: adding new generation capacity and locking in long-term revenue from its existing fleet, with the key question being whether the company can translate the $4.3 billion capital commitment into attractive returns. Melius Research analyst James West called it "a monster deal."

Constellation shares surged as much as 14 to 15 percent intraday before closing up roughly 12 percent, making the stock the top performer in both the S&P 500 and the Nasdaq 100 on the day. The VanEck Uranium and Nuclear ETF climbed about 6.4 percent, with Centrus Energy rising 12.4 percent and Oklo also gaining as investors extrapolated broader demand for nuclear power from AI-driven data center growth. The deal adds Google to a roster that already includes Microsoft, which backed the restart of Three Mile Island, and Amazon, extending what analysts described as an accelerating race among hyperscalers to secure long-term clean power supplies for AI infrastructure.