Google has signed a major long-term electricity agreement with Constellation Energy covering about 3,590 megawatts (MW) of power, as technology companies race to secure enough electricity to meet the growing demands of data centres across the United States.
Under the agreement announced on Tuesday, about 890MW of the electricity will come from upgraded nuclear power plants operated by Constellation, while another 2,700MW will be supplied through the PJM power grid.
The deal is expected to involve more than $4.3 billion in new investment by Constellation to increase generating capacity at several of its nuclear facilities in the Midwest and Mid-Atlantic regions.
Google and Constellation said the agreement forms part of efforts to expand reliable electricity supply as the rapid growth of data centres puts increasing pressure on US power grids.
Nuclear Power to Supply Part of Google’s Demand
Google has entered into a 20-year power purchase agreement covering 890MW from several Constellation-owned nuclear facilities.
The reactors involved will be upgraded to increase their output using existing generation infrastructure. Electricity from the first upgraded facility is expected to begin reaching the grid in 2028.
Google has also signed a separate 15-year agreement for an additional 2,700MW of electricity from Constellation within the PJM power grid.
Unlike the nuclear portion of the agreement, that electricity is not linked to a particular generation source. Google said the arrangement provides Constellation with long-term revenue certainty for its existing power plants.
Constellation shares rose more than 13% on Tuesday, reaching $304.04 by mid-morning.
The Maryland-based company is the largest operator of nuclear power plants in the US. It also owns a significant fleet of natural-gas power plants and expanded into geothermal energy following its acquisition of electricity producer Calpine Corp earlier this year.
Amanda Peterson Corio, Google’s global head of energy and power, said the company wanted to ensure its expansion was supported by reliable and cleaner electricity.
“We’re committed to meeting our growth responsibly by actively investing in clean, reliable power that brings new capacity to our nation’s grids,” she said.
11 Nuclear Units to Be Upgraded
The agreement will involve upgrades to 11 nuclear units located across Illinois, Pennsylvania and New Jersey.
All of the facilities are within the service area of PJM Interconnection, the largest electric grid in the US.
The need for additional electricity has become increasingly urgent as technology companies build more data centres to support artificial intelligence and other digital services.
The rapid expansion of data centres has contributed to a sharp increase in electricity demand. PJM capacity prices have risen more than 11-fold since 2024, while the grid has also faced a power supply shortfall.
In response to the pressure, PJM management has proposed that data centre operators connected to its 13-state network either provide their own electricity or accept the possibility of being remotely disconnected from grid power during periods of peak demand.
The Google-Constellation agreement is partly a response to that proposal.
The companies said the deal demonstrates how major electricity consumers can help bring additional generating capacity online while meeting their own growing operational needs, without relying on state or federal mandates.
Deal Could Become Model for US Energy Expansion
Google and Constellation also agreed on a broader strategic framework that could be replicated in other parts of the US.
The framework could support the development of new power generation, battery storage and demand-response systems, which allow electricity consumption to be adjusted depending on grid conditions.
Constellation Chairman, President and CEO Joe Dominguez described the agreement as a potential model for cooperation between major technology companies and the energy sector.
He said it could demonstrate how both industries can support the expansion of the digital economy while investing in energy infrastructure and delivering wider benefits to the electricity grid through private-sector funding.
The deal comes as major technology companies increasingly seek long-term electricity supplies to power energy-intensive data centres, while US energy companies look to expand generation capacity to meet the new demand.
