Google has agreed to buy 890 megawatts of new nuclear output that Constellation Energy will create by upgrading 11 existing reactor units, under a 20-year contract the companies announced Tuesday, SiliconANGLE reported. A second, 15-year agreement covers 2,700 megawatts from Constellation plants already running, bringing Google's commitment to roughly 3.6 gigawatts on the PJM Interconnection grid.

What Happened

Constellation said the uprate deal supports more than $4.3 billion of new investment at six plant sites in Illinois, Pennsylvania and New Jersey. SiliconANGLE reported the work includes new turbines, modern steam generators and advanced digital control systems. Constellation expects the first uprate to start delivering power in 2028; the companies did not give a full schedule for the rest. Price terms were not disclosed.

The 15-year supply agreement draws on Constellation's existing fleet in PJM rather than new capacity. The companies said the uprates will sustain about 4,400 existing jobs and create about 7,200 temporary construction jobs.

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The arrangement also runs the other way. Under a five-year technology alliance, Constellation will use Google Cloud computing and the Gemini Enterprise platform. SiliconANGLE listed site selection, outage management, critical-infrastructure protection and generator dispatch among the uses, while Constellation's release cited permitting and interconnection planning and asset health monitoring.

Constellation shares were up almost 14% in morning trading, Utility Dive reported.

Why It Matters

An uprate raises the output of a reactor that already has a license, a grid connection and trained staff, which is generally quicker and cheaper than building a plant. Amanda Peterson Corio, Google's head of data center energy, wrote that the 94 reactors operating in the U.S. leave substantial room to unlock more nuclear capacity quickly and cost-effectively.

The power lands on a stretched grid. PJM serves about 67 million people in 13 states and faces a shortfall of about 6.8 gigawatts of new capacity as data center demand rises, according to Utility Dive. The grid operator recently delayed a planned reliability backstop procurement after the Federal Energy Regulatory Commission only partly approved it Sept. 29.

Google tied the deal to the White House Ratepayer Protection Pledge, which is meant to keep the cost of new demand from falling on residential customers. Constellation CEO Joe Dominguez called the agreement "a model for how technology companies and the energy industry can work together."

Context

Hyperscalers have been racing to lock up firm, carbon-free power for AI data centers. Google previously signed with NextEra Energy to restart the Duane Arnold plant in Iowa and with Southern Co. to upgrade two plants. Constellation announced a 690-megawatt deal with Amazon on Sept. 30 that includes a 190-megawatt expansion at Calvert Cliffs in Maryland, with that capacity due between 2030 and 2032. Microsoft backed the restart of a Three Mile Island reactor, and Meta has signed 20-year power purchase agreements with Vistra.

What to Watch

Power uprates require approval from the Nuclear Regulatory Commission, and Constellation must complete the work plant by plant, so the timing of filings after the first 2028 delivery will show how quickly the 890 megawatts arrive. PJM's handling of its capacity shortfall and the delayed backstop procurement will determine how much relief the added output provides, and whether Google and other buyers keep the pledge that residential customers will not pay for their growth.