Google Secures 890 MW Of Nuclear Power from Constellation Energy

Google/Alphabet (NASDAQ:GOOG) says it has contracted 3,590 megawatts of power from Constellation Energy (NASDAQ:CEG) in the largest US power grid, PJM Interconnection, which serves 67 million people across 13 states and Washington, D.C.New nuclear energy will account for about a quarter of that supply, or 890 megawatts. Artificial intelligence and data center expansion have drastically increased Google's electricity usage and carbon emissions.Major tech companies are racing to secure massive amounts of electricity supplies to power data centers across the US by striking unprecedented power deals and reviving the country’s nuclear industry, Reuters reported on Tuesday.Unlike renewables, nuclear provides continuous base-load power.Data centers are inherently energy-intensive, and their power consumption is projected to double globally by 2030, reaching around 945-980 terawatt-hours (TWh) annually. In some countries like the US, they could account for up to 12% of total electricity consumption by 2030, straining existing power grids.The Google-Constellation deal involves adding capacity at several of Constellation’s nuclear reactors in the Midwest and Mid-Atlantic regions.“The 20-year power purchase agreement will enable investments in new equipment and technology at 11 Constellation-owned nuclear units in Illinois, Pennsylvania, and New Jersey, increasing thermal and electrical efficiency to unlock additional reliable, firm power to serve the grid,” Constellation wrote in a statement.The company will make over $4.3 billion of new investments in its fleet as part of the agreement. Electricity from the first of the upgraded plants would be delivered in 2028.Reuters notes the agreement between Google and Constellation is in response to PJM’s “bring your own power” proposal:Rising electricity demand driven largely by the data center expansion has contributed to a more than 11-fold increase in PJM capacity prices since 2024 and left the grid with a power shortfall.In response, PJM management has proposed requiring data center customers connected to the 13-state grid to either bring their own power or face being shut off from grid power remotely in times of peak demand.The Google-Constellation deal is the latest in a string of nuclear power announcements involving “Magnificent Seven” tech companies.Google has also contracted to restart NextEra Energy’s (NYSE:NEE) nuclear power plant in Iowa. Constellation has agreed to restart its Three Mile Island reactor in Pennsylvania to serve Microsoft’s (NASDAQ:MSFT) data centers.Constellation has a 20-year power purchase agreement announced Sept. 30 with Amazon (NASDAQ:AMZN) to supply it with 690 megawatts from its Calvert Cliffs nuclear plant in Maryland; and a 20-year virtual PPA with Meta (NASDAQ:META) for 1,121 MW of power.In August, Oilprice reported that Major data center operator Equinix (EQIX.O) announced a series of agreements to secure advanced nuclear electricity, including power purchase agreements and a pre-order for microreactors, to fuel its data centers. The move comes as the growing energy demands of data centers, driven by technologies like generative artificial intelligence (AI), raise concerns about global power supplies.According to a company statement, the agreements are part of Equinix's long-term strategy to ensure a stable and sustainable electricity supply for its global operations. The deals are expected to provide more than one gigawatt of electricity to Equinix's data centers, a significant step as the company plans for future growth.The United States accounts for roughly 30% of global nuclear electricity generation, making it the world’s top nuclear provider. Other significant nuclear states include France, China, Russia and South Korea.The 94 operating reactors spread across commercial power plants produce about 782,000 gigawatt-hours (GWh) annually, which supplies nearly 18-19% of the total electricity used in the country.The last new nuclear reactor built in the US is Vogtle Unit 4 in Burke, Georgia, which began commercial operation in April 2024.By Andrew Topf for Oilprice.comMore Top Reads From Oilprice.comIndia Could Boost Crude and Critical Minerals Supply from EcuadorEU Delays Methane Rules, Opens Refinery Talks as Fuel Prices Hit RecordsGulf Producers Say Importers Should Share the Cost of Hormuz Workarounds