Google, Constellation near billion-dollar deal for nuclear power

• Google is close to a multi-year deal worth over US$1 billion to buy nuclear energy from Constellation Energy to support its data centre power needs.
• Nuclear power is gaining renewed interest due to its reliable, emissions-free electricity, crucial for the AI boom and tech companies' rising energy demands.
• Other tech giants like Amazon and Microsoft have similar agreements with nuclear operators, reflecting a broader industry trend towards nuclear energy for clean, constant power.

MARYLAND – Google parent Alphabet is close to an agreement to buy nuclear energy from Constellation Energy, as technology companies race to line up power for the data centre boom. 

The tech giant is nearing a deal to pay Constellation US$1 billion (S$1.2 billion) or more over the course of a multi-year agreement that is expected to be announced as soon as this week, according to people familiar with the discussions, who asked not to be named because the information is private.

Constellation, the biggest US reactor operator, and Google declined to comment on Oct 5. The exact scale and location of the nuclear capacity could not be determined. 

The immense amount of electricity required for the artificial intelligence boom is helping to revive interest in nuclear energy, which offers around-the-clock power that is also emissions-free. Recent deals have focused on existing facilities as new reactors can take a decade or more to permit and build, and the next wave of fission technology is still likely years from widespread deployment. 

Amazon struck a similar deal last week with Constellation. The cloud and e-commerce company agreed to buy 690MW of power, including capacity from upgrading the Calvert Cliffs nuclear facility in Maryland.

Google already has multiple agreements with atomic power producers. It agreed in 2025 to buy electricity from NextEra Energy, a deal that will support the power company’s plans to restart its Duane Arnold reactor in Iowa that has been shuttered since 2020. And in September the tech company lined up new capacity from Southern by funding upgrades at two atomic plants.

Microsoft agreed to buy the electricity from the shuttered Three Mile Island nuclear plant in 2024, and Constellation is planning to restart its reactor at the site in Pennsylvania in 2027.

While safety risks and heavy cost overruns saw the world sour on atomic energy early last decade, it has been undergoing a global revival over the last few years. As well as surging demand from the tech sector for data centres, nuclear power is being embraced by many nations as a way to cope with a jump in electricity consumption while cutting emissions. BLOOMBERG