Google Signs Massive Nuclear Power Deal to Fuel Its Data Centers

Google has signed a major agreement with Constellation Energy to secure 3,590 megawatts of electricity, a move aimed at powering its fast-growing data center operations, according to Reuters. As part of the arrangement, Constellation will invest more than $4.3 billion in its generation fleet.

Reactor Upgrades and Long-Term Supply

The Google nuclear power deal commits 890 megawatts over 20 years from 11 Constellation reactors across Illinois, Pennsylvania and New Jersey. Those plants will be upgraded to generate additional output, with the first expected to come online in 2028. Google has also agreed to take a further 2,700 megawatts over a 15-year period.

Power Demand Strains the Grid

The agreement arrives as data centers push electricity demand to new highs. Prices on PJM Interconnection, the largest grid in the United States, have climbed more than elevenfold since 2024, the report says. Grid operators are now urging data centers to supply their own power or risk being curtailed during peak demand. Google and Constellation present the partnership as a direct response to that pressure.

Nuclear power is attractive to technology companies because it delivers steady, carbon-free electricity around the clock, unlike solar and wind, which depend on weather. For Google, locking in long-term supply offers cost predictability and some insulation from volatile wholesale prices.

Constellation chief executive Joe Dominguez described the deal as a template for cooperation between the technology sector and energy producers. Investors appeared to agree, as Constellation shares rose more than 13% in Tuesday morning trading.

With electricity demand from artificial intelligence expected to keep climbing, similar deals between tech firms and power producers are likely to follow.