Google locks 3.6 GW Constellation deal, 890 MW from reactor uprates
TL;DR
- FERC votes October 12 on BYONC, requiring data centers over 50 MW entering PJM after June 2027 to source their own power or face curtailment.
- Reactor uprates cost roughly $4,800/kW versus $10,000-plus for new nuclear builds, making existing plant upgrades the cheapest clean capacity available in PJM.
- The 2,700 MW existing-fleet agreement represents 75% of the deal, but undisclosed pricing leaves Constellation's earnings uplift from the contract unquantifiable until guidance.
Google has agreed to buy 3,590 megawatts of power from Constellation Energy, roughly a quarter of it from new nuclear capacity sourced from upgrades to existing reactors. Reuters reported the deal on October 6.
The structure is two contracts. A 20-year power purchase agreement covers 890 MW of new nuclear output, financed by upgrades to 11 Constellation-owned reactors in Illinois, Pennsylvania and New Jersey. A separate long-term supply agreement covers another 2,700 MW from Constellation's capacity inside PJM Interconnection. Electricity from the first upgraded plant is expected in 2028.
The "new" nuclear here is not a new reactor. It is uprates: new equipment and higher thermal and electrical efficiency at reactors that already exist, pulling more megawatts out of the same fleet. Constellation says the project represents more than $4.3 billion of new investment, sustains roughly 4,400 existing jobs, and creates approximately 7,200 new construction jobs during the building period.
"Preserving and expanding the output of the existing nuclear fleet and developing new clean generation is critical to meeting our nation's growing energy needs while keeping costs affordable for homes and businesses," said Joe Dominguez, chairman, president and CEO of Constellation.
The deal lands amid a steady run of hyperscaler-utility pairings we've been tracking on the AI infrastructure beat, with contracts shifting from one-off site tie-ups toward multi-decade capacity blocks.
What others are reporting
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Google Cloud Press Corner Read →
Official joint release details three Gemini and Google Cloud deployment areas, White House UPRISE program alignment, and the dual-contract structure separating the 890 MW uprate PPA from the 2,700 MW supply agreement.
This long-term clean energy collaboration with Google can serve as a model for how technology companies and the energy industry can work together.
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BNN Bloomberg Read →
Frames the deal as a direct response to PJM's bring-your-own-power proposal, documents PJM capacity prices rising 11-fold since 2024, and positions the structure as a replicable template for other regions.
We're committed to meeting our growth responsibly by actively investing in clean, reliable power that brings new capacity to our nation's grids.
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ZeroHedge Read →
Provides the BYONC and IRAS policy mechanisms, the October 12 FERC vote date, PJM auction data showing $554.72/MW-day clearing without price controls, and uprate economics at $4,800/kW versus $10,000-plus for new build.
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TIKR Read →
Focuses on the underappreciated 2,700 MW existing-fleet contract (75% of capacity), CEG's 24% YTD stock decline versus Alphabet's 11% gain, and the valuation compressing to 13.6x EV/EBITDA from a 25.8x January 2025 peak.
We're committed to meeting our growth responsibly by actively investing in clean, reliable power.
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Crypto Briefing Read →
Investor read on contract duration: the 20-plus-15-year structure gives Constellation an unusually long demand runway, but full 890 MW capacity does not arrive until 2032, adding years of execution risk.
A 20-year agreement on new capacity and a 15-year agreement on existing output give Constellation an unusually long runway of visible demand.
Originally reported by reuters.com
Read the original article →Original headline: Google Signs 3.6GW Power Deal With Constellation Energy, 25% From New Nuclear Capacity