The deal covers 3,590 MW in PJM, the largest US power grid, with about a quarter coming from new nuclear. Constellation signed a 20-year power purchase agreement for 890 MW from upgraded nuclear plants and will invest more than $4.3 billion in fleet upgrades, with the first upgraded plant delivering power in 2028. Eleven nuclear units in Illinois are slated for upgrades. A separate 15-year supply agreement covers an additional 2,700 MW.
Constellation rose 13.92 percent to $304.87 by mid-morning, with a market capitalization of $108 billion. The company is the largest US nuclear operator and recently completed the Calpine acquisition. Google shares added 0.37 percent to $347.76, valuing Alphabet at $4.18 trillion.
The structure responds directly to grid politics. PJM has proposed a “bring your own power” framework, and data centers have been blamed for more than half of the region’s power-cost increases. The deal is the latest evidence that hyperscalers are financing generation themselves rather than waiting for utilities, following the pattern of Microsoft’s and Amazon’s earlier nuclear arrangements.
For the sector, the implication is that power procurement is now a competitive input to AI capacity, alongside GPUs and land. Morgan Stanley’s estimate of a 34 percent net US data-center power shortfall through 2028 (32 GW) remains the macro frame, and Google’s willingness to sign 15- and 20-year terms signals that the industry expects the shortage to persist well into the next decade.