Google has entered into a 20-year power purchase agreement with Constellation Energy for 3,590 megawatts of electricity, including upgrades to 11 nuclear reactors in Illinois, Pennsylvania, and New Jersey. The deal, worth more than $4.3 billion in Constellation investment, is one of the largest corporate power agreements ever and is partly a response to grid rules that require large data center customers to bring their own power.
Google announced on Tuesday that it has contracted for 3,590 megawatts of power from Constellation Energy in PJM Interconnection, the largest U.S. power grid. The agreement involves two parts: an 890-megawatt purchase from multiple Constellation-owned nuclear plants that will be upgraded to produce more electricity, and a long-term supply agreement for an additional 2,700 megawatts from Constellation's existing generation fleet.
Constellation, the largest U.S. nuclear plant operator, said the deal will enable more than $4.3 billion of new investment. The 11 nuclear units being upgraded span Illinois, Pennsylvania, and New Jersey. Electricity from the first upgraded plant is expected to be delivered in 2028.
"We're committed to meeting our growth responsibly by actively investing in clean, reliable power that brings new capacity to our nation's grids," said Amanda Peterson Corio, Google's global head of energy and power, in a statement.
The agreement comes as major tech companies race to secure massive electricity supplies for data centers driven by the AI boom. In recent years, Constellation struck a deal to restart its Three Mile Island reactor to serve Microsoft data centers, and Google contracted to restart NextEra Energy's nuclear plant in Iowa.
Google and Constellation said the arrangement responds to PJM management's "bring your own power" proposal, which would require data center customers to supply their own electricity or face remote shutoff during peak demand.
Analysis
Why This Matters
- Data center energy demand from AI is reshaping U.S. electricity markets; this deal shows how tech companies are securing long-term, carbon-free supply to maintain growth.
- The agreement signals a shift toward nuclear power as a preferred source for baseload clean energy, potentially reviving investment in reactor upgrades and extended operations.
- It also highlights how grid operators like PJM are forcing large customers to internalize the cost of added demand, a trend that could affect data center location decisions.
Background
Tech companies are under pressure to power expanding data center fleets without increasing carbon emissions, leading to an unprecedented scramble for clean, reliable electricity. Nuclear plants offer a high-capacity, carbon-free source that runs 24/7, unlike intermittent renewables. The PJM grid, which covers 13 states from the Midwest to the Mid-Atlantic, has proposed rules requiring new large loads to either bring their own generation or be subject to curtailment during tight supply periods. This deal is one of the first major corporate responses to that proposal.
Key Perspectives
[Google and Constellation Energy]: They view the deal as a win-win: Google secures enough power to support its AI and cloud infrastructure, while Constellation gains revenue certainty to invest in upgrades and extend the life of existing nuclear assets. Both companies frame it as a responsible growth strategy.
[Grid operators and regulators]: PJM's proposal reflects concern that unchecked data center growth could strain the grid and shift costs to other ratepayers. Requiring these customers to bring their own power puts the onus on them to ensure reliability.
[Critics and environmental groups]: While nuclear power is carbon-free, concerns persist about waste, safety, and the high costs of plant upgrades. Some may argue that energy efficiency and renewables, paired with storage, would be a cheaper and faster solution than doubling down on nuclear.
What to Watch
- The 2028 delivery date for the first upgraded power; any delays could signal project viability.
- PJM's final decision on its "bring your own power" proposal, which could set a precedent for other U.S. grids.
- Whether other hyperscale cloud providers (Microsoft, Amazon, Meta) follow with similar nuclear purchase agreements.