Google Signs 3,590-Megawatt Power Deal With Constellation, Including 890 Megawatts of Upgraded Nuclear Output

Google has agreed to buy 3,590 megawatts of electricity from Constellation Energy on the PJM grid, the largest power grid in the United States, with nuclear generation supplying about a quarter of the total, the companies said on Tuesday, according to Reuters.

The arrangement is expected to support more than $4.3 billion in new investment by Constellation, centered on raising output at nuclear reactors in the Midwest and Mid-Atlantic, according to Reuters. It is the latest long-term purchase by a major technology company racing to secure reliable supply for data centers.

What the agreement covers

Under a 20-year power purchase agreement, Google will take 890 megawatts from several Constellation nuclear plants after upgrades that increase output from existing reactors, according to Reuters. Power from the first upgraded plant is expected in 2028.

A separate long-term supply agreement covers another 2,700 megawatts from Constellation within PJM. That portion is not tied to one generation source and is intended to give the utility steady revenue for its operating plants, Google said, according to Reuters. In total, upgrades are planned at 11 nuclear units in Illinois, Pennsylvania and New Jersey, all inside the PJM footprint.

The companies linked the deal to a PJM proposal that would require large data center customers to bring their own generation or risk losing grid power at peak times, according to Reuters. Constellation is the country’s largest nuclear plant operator and also runs a large fleet of natural-gas plants.

The purchase adds to a run of nuclear agreements involving the same companies’ peers. Constellation has previously agreed to restart its Three Mile Island reactor in Pennsylvania to serve Microsoft data centers, while Google earlier contracted to restart a NextEra Energy nuclear plant in Iowa, according to Reuters.

Reporting based on coverage by Reuters.