Constellation adds nuclear output in PJM through Google deal

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Constellation-Google nuclear deal

Highlights

Constellation signed a Google deal to boost output by 890 megawatts at 11 existing nuclear plants in PJM using system upgrades, driving a 15% share rise.
The agreement follows Constellation's 190-megawatt Amazon deal and led to Vistra and Talen Energy shares jumping over 9%, with Centrus Energy up more than 7%.
Evercore estimates economically justified nuclear uprates across the U.S. fleet could add 4 to 8 gigawatts by the mid-2030s as tech demand strains supply.

Nuclear uprates target strained PJM supply

As reported by CNBC, Constellation signed a deal with Google on Tuesday to increase output from nearly a dozen existing nuclear plants, using equipment and system upgrades rather than building new generation. The additional capacity is set to come from investments in turbines, steam generators and control systems at 11 sites, feeding more supply into PJM Interconnection, the largest electric grid in the U.S.

The 890-megawatt increase is roughly equivalent to one large reactor and would provide enough electricity to power more than 600,000 homes, based on average U.S. electricity consumption in 2022. The arrangement reflects a broader push by large technology groups to secure dependable nuclear power more quickly, as new nuclear projects and small modular reactors remain slower or less commercially proven options.

Constellation shares jumped 15% after the agreement. PJM, which spans 13 states and the District of Columbia and serves more than 65 million people, is under mounting pressure as data center demand grows faster than available supply and new grid connections can take years.

Broader read-through for power producers and fuel suppliers

The Google agreement follows Constellation's deal with Amazon last week to add 190 megawatts at its Calvert Cliffs plant in Maryland, the state's only nuclear facility. The back-to-back transactions reinforce nuclear power's appeal to data center operators because it offers steady electricity supply without carbon dioxide emissions.

Nicholas Amicucci, an analyst at Evercore ISI, said in a client note on Tuesday that the Constellation deals are positive for other independent power producers with nuclear plants that could also be upgraded. Shares of Vistra and Talen Energy rose more than 9% on Tuesday, while Centrus Energy gained more than 7% as the prospect of higher reactor output points to stronger fuel demand for uranium enrichers.

The trend also reflects a shrinking pool of shuttered nuclear plants that can realistically return to service. Constellation is reopening Three Mile Island through a Microsoft agreement, NextEra Energy is restarting the Duane Arnold plant in Iowa through a Google deal, and Holtec is reviving the Palisades facility in Michigan with local partners. Evercore estimates economically justified uprates across the existing fleet could add 4 to 8 gigawatts of nuclear capacity by the mid-2030s, equal to about 4 to 8 large reactors.

Our earlier report on Canada’s Belledune microreactor project explained how Ontario and New Brunswick are advancing a 50‑MW, Indigenous-led pilot designed to deliver reliable baseload power and strengthen domestic nuclear supply chains. The piece highlighted BWXT Canada’s role in fabricating a transportable nuclear plant and outlined the expected jobs, training, and broader industrial benefits tied to scaling nuclear options for remote and grid-connected communities.

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