TLDR
- Google’s parent company Alphabet is on the verge of finalizing a multi-year nuclear energy contract with Constellation Energy valued at over $1 billion.
- The partnership could be publicly revealed within days, sources told Bloomberg News.
- Shares of Constellation Energy (CEG) surged 4% during premarket hours Monday on the news.
- The move follows similar nuclear energy commitments by Amazon and Microsoft as artificial intelligence workloads demand more power.
- Alphabet has already established nuclear partnerships with NextEra Energy and Southern Company.
Shares of Constellation Energy (CEG) jumped 4% in Monday’s premarket session after Bloomberg News disclosed that Alphabet (GOOGL), Google’s parent company, is on the brink of securing a substantial nuclear energy agreement with the utility provider. Sources familiar with the negotiations indicate the contract is valued at $1 billion or higher and may be unveiled as early as this week.
Both companies have remained silent about the potential partnership. Google has yet to respond to media inquiries submitted after regular business hours, while Constellation offered no statement when approached for comment.
Specific terms of the arrangement remain undisclosed. The total power capacity and the source facilities for the energy supply have not been revealed.
Why Tech Companies Want Nuclear Power
The explosive growth of artificial intelligence has created unprecedented electricity demands at data centers, driving tech companies toward nuclear energy solutions. Nuclear facilities deliver consistent, carbon-free baseload power, making them attractive to organizations operating energy-intensive computing infrastructure.
Unlike renewable sources such as solar panels or wind turbines, nuclear reactors generate electricity continuously without interruption from weather patterns or time of day. This uninterrupted availability is critical for data centers requiring 24/7 uptime.
Google is far from alone in pursuing nuclear solutions for its energy needs. Multiple technology leaders have already executed comparable agreements to secure reliable power sources.
Amazon (AMZN) finalized a contract with Constellation to purchase 690 megawatts of capacity. A portion of that energy will be generated through planned enhancements at Constellation’s Calvert Cliffs facility located in Maryland.
Microsoft (MSFT) struck a comparable arrangement in 2024, committing to purchase electricity from Pennsylvania’s Three Mile Island nuclear station. Constellation intends to bring that facility back online in the coming year.
Google’s Growing List of Nuclear Partnerships
The potential Constellation agreement would mark yet another chapter in Google’s nuclear energy expansion. In the previous year, the tech company collaborated with NextEra Energy (NEE) on efforts to revive Iowa’s Duane Arnold nuclear facility.
Just last month, Google announced a partnership with Southern Company (SO) aimed at upgrading two of the utility’s existing nuclear installations. Adding Constellation to this list would further diversify Google’s clean energy procurement strategy.
Should the deal be finalized, it would provide Google with additional dedicated electricity capacity specifically earmarked for artificial intelligence computing demands. This has become increasingly strategic as the company continues expanding its global data center network.
Financial analysts maintain an optimistic outlook on Alphabet shares independent of this particular energy transaction. TipRanks data shows GOOGL holds a Strong Buy consensus among analysts, reflecting 24 Buy recommendations and four Hold ratings issued in the last three months.
The mean price target among analysts stands at $427.88, suggesting potential appreciation of approximately 24% from present trading levels. This positive sentiment stems from confidence in Alphabet’s overall business model rather than energy procurement alone.
Constellation has now positioned itself as a key energy partner to three dominant technology corporations: Amazon, Microsoft, and potentially Google. While each agreement contains unique provisions, they all share a common driverāmajor tech companies require substantially more electricity, and nuclear power is emerging as a preferred solution.
For the moment, the Google-Constellation partnership remains unverified by official company channels. Bloomberg’s reporting, based on unnamed sources with knowledge of the discussions, represents the sole confirmation available. A formal announcement may arrive in the coming days.
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