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Google signs 3,590-megawatt power deal with Constellation

The companies said the agreement will enable more than $4.3 billion in investment, including upgrades to nuclear reactors in three states.

Electricity transmission lines near a power generation facility
Photo: CNA

Google has agreed to buy 3,590 megawatts of electricity from Constellation Energy within PJM Interconnection, the largest U.S. power grid, the companies said on October 6. About a quarter of the contracted supply will come from added nuclear generating capacity.

A 20-year purchase agreement covers 890 megawatts from Constellation nuclear plants whose existing reactors would be upgraded to increase output. The work is expected to involve 11 nuclear units across Illinois, Pennsylvania and New Jersey. The companies expect deliveries from the first upgraded plant to begin in 2028.

A separate long-term agreement covers another 2,700 megawatts from Constellation in PJM, without specifying a generation source. Google said that contract gives Constellation's operating plants greater certainty over long-term revenue.

The companies said their arrangement responds to a proposal by PJM management that would require data center customers on its 13-state grid to supply their own power or risk remote disconnection during peak demand. Technology companies have been arranging large electricity purchases to support U.S. data centers.

Constellation, based in Maryland, is the largest operator of U.S. nuclear power plants and also owns a substantial fleet of natural-gas-fired plants. Google previously contracted to restart NextEra Energy's Iowa nuclear plant, while Constellation announced a restart agreement for its Three Mile Island reactor in Pennsylvania to supply Microsoft data centers.

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Karim Mansour

Energy & Commodities Editor

Edits and reviews stories on oil, gas, power, renewables, nuclear, coal, metals and agriculture, supply and demand outlooks, and OPEC.