Google Signs 890-MW Nuclear Deal With Constellation in the PJM Region
Constellation Energy has signed a 20-year power purchase agreement (PPA) with Google that will add 890 MW of new nuclear generation to the PJM Interconnection grid. The announcement came on Tuesday, just days after Constellation struck a similar agreement with Amazon, and together the two deals put almost 1.1 GW of nuclear expansion on the table in the span of a week.
Key Takeaways
- Deal size: 20-year PPA for 890 MW of new nuclear capacity in PJM
- How it’s built: Uprates at 11 existing units across six sites in Illinois, Pennsylvania and New Jersey
- Investment: $4.3 billion in new investment by Constellation
- Timeline: First uprate expected online in 2028
- Extra supply: A separate 15-year agreement for another 2,700 MW across the PJM market
- Market reaction: Constellation shares rose almost 14% in morning trading
What Exactly Did Constellation and Google Agree To?
Under the 20-year PPA, Constellation will add 890 MW through uprates of 11 existing nuclear units in PJM. An uprate raises the output of a reactor that is already running, so the new power comes from existing sites rather than a ground-up build. The units sit at six locations across Illinois, Pennsylvania and New Jersey, and the first uprate is expected to be online in 2028.
The $4.3 billion in new investment will be backed by Constellation. Alongside the nuclear agreement, the two companies also signed a 15-year supply agreement covering another 2,700 MW across the PJM market.
Why Is This Deal Happening in PJM?
PJM is under real pressure. The grid operator is short about 6.8 GW of new capacity and is struggling to find resources as data center demand rises. It is also delaying a planned reliability backstop procurement auction, following the Federal Energy Regulatory Commission’s decision on Sept. 29 to approve the plan only in part.
Constellation described the Google agreement as a “direct response” to PJM’s Bring Your Own Power proposal. The company also said it fits with the White House’s ratepayer protection pledge. In other words, a private buyer is paying for new supply instead of leaving the cost to the wider grid.
Constellation Chairman, President and CEO Joe Dominguez said that preserving and expanding the output of the existing nuclear fleet, along with new clean generation, is critical to meeting the country’s growing energy needs. He added that the Google deal can serve as a model for how technology companies and the energy industry can work together, in a way that delivers grid-wide benefits funded by private entities.
How Does This Compare With the Amazon Deal?
Last week, Constellation announced a 20-year PPA with Amazon worth 690 MW, centered on a $3 billion, 190-MW expansion of the Calvert Cliffs nuclear plant in Maryland. That new capacity is expected to come online between 2030 and 2032.
Put side by side, the Google deal brings its first uprate online sooner, in 2028, while the Amazon expansion is a later build with a 2030-2032 window. Between them, the two agreements support almost 1.1 GW of nuclear expansion.
What Else Is in the Google Agreement?
The deal is not only about electricity supply. The companies said it will include operational load-shaping and demand-response capabilities, which are meant to reduce power consumption when the grid is under stress.
There is a jobs component too. Across the six nuclear sites, the agreement is expected to help sustain roughly 4,400 existing jobs and create about 7,200 temporary construction jobs.
On the technology side, an expanded five-year agreement will see Constellation deploy Google Cloud and AI across its energy operations. Constellation will build Gemini Enterprise agentic workflows directly into its core operations. The companies plan to use AI for:
- Site selection
- Power flow modeling
- Permitting and interconnection planning
- Generation optimization
- Infrastructure security
The companies said that pairing commercial investment in nuclear uprates with advanced Google technology supports the rapid growth of artificial intelligence and digital infrastructure.
What Does This Mean for the Market?
Investors reacted quickly. Constellation shares were up almost 14% in morning trading on the day of the announcement. The wider signal is that large technology buyers are now paying for new nuclear capacity directly, at a time when PJM is short of supply and its own backstop procurement is delayed.
Frequently Asked Questions
How big is the Constellation and Google nuclear deal?
- It is a 20-year power purchase agreement covering 890 MW of new nuclear generation in the PJM Interconnection, backed by $4.3 billion in new investment by Constellation.
Is Constellation building new reactors for Google?
- No. The 890 MW will come from uprates of 11 existing nuclear units at six locations in Illinois, Pennsylvania and New Jersey.
When will the first uprate be online?
- The first uprate is expected to be online in 2028.
What is the 2,700 MW agreement?
- Constellation and Google also entered a separate 15-year supply agreement for another 2,700 MW across the PJM market.
How is the Amazon deal different?
- The Amazon agreement is a 20-year PPA for 690 MW, centered on a $3 billion, 190-MW expansion of the Calvert Cliffs plant in Maryland, with new capacity expected between 2030 and 2032.
Why does PJM need this power?
- PJM is short about 6.8 GW of new capacity and is struggling to find resources as data center demand grows.
How many jobs will the Google deal support?
- The companies expect it to help sustain roughly 4,400 existing jobs and create about 7,200 temporary construction jobs.
