Google turns to Constellation for long-term AI power supply

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Google turns to Constellation

Highlights

Google secured 3,590 MW from Constellation.
Nuclear upgrades will provide 890 MW.
The deal supports more than $4.3 billion of investment.

The companies said the agreement covers 3,590 megawatts within PJM Interconnection, the largest U.S. power grid. Reuters reported that about a quarter of the electricity will come from new nuclear capacity created by upgrading Constellation reactors in the Midwest and Mid-Atlantic.

Nuclear upgrades add 890 MW

Google signed a 20-year power purchase agreement for 890 MW from several Constellation nuclear plants. Eleven reactor units in Illinois, Pennsylvania and New Jersey are expected to receive upgrades that allow the existing facilities to generate more electricity.

The first additional power from those projects is scheduled for delivery in 2028. Rather than building an entirely new nuclear fleet, the companies are extracting additional capacity from reactors already operating within PJM.

Google separately agreed to buy another 2,700 MW from Constellation under a long-term supply arrangement. That electricity is not assigned to a particular generation source, but the contract gives Constellation predictable revenue from its existing power plants.

Data centers reshape electricity procurement

The agreement is part of a broader effort by technology companies to lock in power before new data centers come online. AI computing requires large, continuous electricity supplies, while new generation and transmission projects can take years to develop.

Constellation has already reached an agreement to restart the Three Mile Island reactor in Pennsylvania to supply Microsoft. Google has separately contracted with NextEra Energy for the restart of a nuclear plant in Iowa.

The latest transaction also addresses a specific problem inside PJM. The grid operator has proposed requiring large data-center customers to bring their own electricity supply or face remote disconnection during periods of peak demand. Google and Constellation said their agreement responds to that proposal.

Power supply becomes part of AI expansion

For Google, securing electricity years in advance is becoming part of the physical infrastructure required for continued data-center construction. The company is no longer relying solely on power available from the grid; long-term contracts can help support additional generation before computing demand arrives.

The Constellation agreement also illustrates why existing nuclear plants are attracting technology companies. Upgrading operating reactors can add round-the-clock generation without waiting for entirely new nuclear facilities, while long-term purchasing commitments give utilities greater certainty to finance those projects.

Earlier, we reported that Google invests €13 billion in Finland AI infrastructure.

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