Amazon Locks in 20-Year Nuclear Deal with Constellation to Power AI Data Centers

Key points

• Amazon and Constellation Energy signed a 20-year power purchase agreement (PPA) for 690 megawatts of nuclear power from the Calvert Cliffs Clean Energy Center in Maryland.
• The agreement unlocks more than $3 billion in infrastructure investment, including upgrades that will add 190 megawatts of generating capacity between 2030 and 2032.
• The deal provides Constellation with long-term revenue certainty, supporting a 20-year license extension for the plant and future clean energy development on-site.
• All electricity from Calvert Cliffs will continue to flow into the PJM regional grid, with a separate retail supply agreement supporting Amazon's operations across the 13-state PJM market.
• Constellation shares rose nearly 4% in pre-market trading following the announcement, though Goldman Sachs analyst Carly Davenport maintains a 'Neutral' rating with a $305 price target.

Background

This deal follows a broader trend of Big Tech companies securing long-term nuclear power contracts to meet the energy demands of AI data centers. Recent developments include the U.S. Army's $2 billion investment in nuclear microreactors for military bases and concerns over declining nuclear safety oversight in the U.S. The Calvert Cliffs plant, Maryland's only nuclear facility, already produces about 80% of the state's clean energy.

How outlets are covering it

OilPrice.com (via ZeroHedge) emphasizes the deal's positive impact on the broader power industry and criticizes Maryland's past 'climate-friendly' policies for failing to prepare the grid for data center demand. Constellation Energy frames the agreement as a demonstration of private investment strengthening critical infrastructure, highlighting job creation and tax contributions in Maryland. Both sources agree on the financial and technical details but differ in tone regarding regulatory and political contexts.

Why it matters

The deal underscores the growing reliance on nuclear power to support the energy-intensive AI and data center sector. It signals a shift in how utilities and tech companies approach long-term energy planning, with significant implications for grid stability and clean energy investment in the PJM region.

What to watch

Constellation plans to use the revenue certainty from the deal to pursue a 20-year license extension for Calvert Cliffs and develop new clean energy plants on-site. The 190 megawatt capacity upgrade is scheduled to come online between 2030 and 2032.