Google, Constellation ink deal to expand, extend nuclear generation capacity Lamar Johnson Wed, October 7, 2026 at 12:28 PM EDT 3 min read GOOG -0.14% CEG -0.74% AMZN +0.91% META -1.79% MSFT -0.03% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
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Google and Constellation Energy have entered a 20-year power purchase agreement that will lead to 890 megawatts of new nuclear energy capacity being built, a 15-year energy supply deal and a five-year technology alliance to establish an "AI for energy" strategy, the two companies announced Tuesday.
Construction resulting from the deal will lead to $4.3 billion in new investments from Constellation. The 15-year power supply deal will give Google access to 2,700 MW of energy supply, which will also ensure the continued operation of the assets, according to a joint Oct. 6 press release.
With the deal, Constellation has inked long-term nuclear PPAs with Google, Amazon, Meta and Microsoft since late 2024. The four hyperscalers are expected to have up to $700 billion in capital expenditures in 2026 as they continue the AI buildout, according to earnings calls from earlier this year.
Constellation said the 890 MW of increased capacity will go into the PJM Interconnection grid— a regional transmission organization that serves all or parts of 13 states and Washington, D.C. — and the 2,700 MW of energy supply will also come from existing generation from Constellation's assets in the PJM market, according to the press release. Google said the deal "offers a direct response" to the PJM transmission market's "bring your own power" proposal and aligns with the White House Ratepayer Protection Pledge.
Google is a signatory to the White House pledge, which calls on leading hyperscalers and AI companies to "build, bring, or buy the new generation resources and electricity … and pay for all new power delivery infrastructure upgrades to service their data centers." The first nuclear capacity expansions are expected online by 2028.
Amanda Peterson Corio, Google's global head of energy and power, said the search engine and tech conglomerate is "actively investing in clean, reliable power that brings new capacity" to grids in order to meet its energy growth responsibly. Peterson Corio said the deal will "strengthen the PJM grid … all while protecting energy affordability and supporting local union jobs."
While the financial details for Google were not disclosed, the companies said in the release that by also having a 15-year energy supply deal for existing assets — in addition to the deal for the capacity uprates — the "financial structure ensures that Constellation's operating generation assets continue to deliver energy and capacity to the PJM market."
Through Constellation and Google's technology alliance, Google Cloud and Gemini Enterprise will be used with a goal of bringing capacity online faster, optimizing asset use and protecting critical infrastructure. Constellation's Chair, CEO and President Joe Dominguez said in the release that the deal with Google "can serve as a model for how technology companies and the energy industry can work together."
"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," Dominguez said.
The long-term PPA came a week after Constellation and Amazon announced a 20-year PPA that will expand Maryland's largest source of clean energy. That deal will expand Maryland's 1,790 MW Calvert Cliffs Clean Energy Center, adding an additional 190 MW of new generation that's expected online between 2030-2032.
Constellation also inked a 20-year PPA with Meta last year to support and extend operations at an Illinois nuclear plant, and another with Microsoft in fall 2024 that will lead to the restart of a nuclear generation station at Pennsylvania's Three Mile Island.
Corporate deals for nuclear power expanded past the tech sector this year, with retailer Walmart getting in on the action with its own nuclear PPA. In June, Constellation and Walmart signed a deal the energy company said was "among the first of its kind between a large retailer and nuclear energy facility in the U.S."
