Google Secures 3.6 GW Power Deal with Constellation to Fuel Data Center Expansion

Key points

• Google contracted for 3,590 megawatts of power from Constellation Energy within the PJM Interconnection grid.
• The agreement includes 890 megawatts from upgraded nuclear plants and 2,700 megawatts from long-term supply contracts.
• Constellation will invest over $4.3 billion to upgrade 11 nuclear units in Illinois, Pennsylvania, and New Jersey.
• The deal responds to PJM’s proposal requiring data centers to bring their own power to avoid peak demand shutdowns.
• First electricity from the upgraded nuclear plants is expected to be delivered in 2028.

Background

This deal follows a trend of major tech firms securing long-term nuclear power contracts to support data center growth. In October 2026, Amazon signed a similar 20-year agreement with Constellation for 690 megawatts from the Calvert Cliffs plant. Earlier in 2026, Constellation agreed to restart the Three Mile Island reactor for Microsoft, and Google previously contracted to restart a NextEra Energy plant in Iowa. These moves reflect the industry’s push to secure reliable, clean energy amid tightening grid constraints and regulatory pressures to shift infrastructure costs away from residential ratepayers.

Why it matters

The agreement highlights the escalating competition among tech giants to secure dedicated power supplies for energy-intensive data centers. By locking in long-term contracts and funding nuclear upgrades, Google aims to ensure grid reliability and comply with PJM’s new requirements, while Constellation gains revenue certainty and capital for infrastructure modernization. This trend underscores the growing intersection of AI-driven energy demand and traditional utility investment strategies.

What to watch

Constellation will proceed with the $4.3 billion investment to upgrade 11 nuclear reactors, with the first upgraded plant expected to deliver power in 2028. The company will continue to secure long-term revenue from the 2,700 megawatt supply agreement, while Google will integrate this power into its data center operations to meet PJM’s 'bring your own power' mandates. Market watchers will monitor the impact on Constellation’s stock and the broader utility sector as more tech firms pursue similar deals.