Google (GOOG, GOOGL) on Tuesday said it has inked a $4.3 billion deal with Constellation Energy (CEG) to bring 890 megawatts of nuclear energy online via a 20-year power purchasing agreement.
The new capacity, the company says, will come from upgrades at six existing nuclear plants in Illinois, New Jersey, and Pennsylvania, and include improvements such as modernized turbines, steam generators, and digital control systems.
The tech giant says the agreement provides Constellation with the revenue certainty needed to invest in updates to 11 of its reactors, while ensuring customers don’t have to pay additional costs resulting from the AI boom.
As part of the deal, Constellation will use Google’s Gemini Enterprise software to help with site selection, outage management, and infrastructure protection.
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Google has invested in a number of other nuclear projects across the US, including in Georgia, Iowa, and Tennessee, the company said.
Big Tech has been leaning into nuclear energy to meet its power capacity needs amid the AI buildout.
Nuclear provides clean energy versus traditional carbon power options, though it still carries a significant stigma.
In January, Amazon signed a deal with Constellation for nuclear power, and Microsoft entered a 20-year agreement with the company in 2024, under which it will source energy from one of Constellation’s previously shuttered reactors at Three Mile Island by 2028.
Meta (META) is also in on nuclear power, signing a 20-year deal to purchase power from Vistra’s (VST) plants.
Firms are also investing in small modular reactors, compact power plants designed to provide megawatts of power, rather than upwards of 1 gigawatt. A gigawatt is enough energy to power nearly 800,000 homes.
Email Daniel Howley at dhowley@yahoofinance.com. Follow him on X at @DanielHowley.
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