Google signs 20-year nuclear deal backed by more than $4.3 billion in upgrades

Google and Constellation Energy announced a 20-year power purchase agreement on 6 October for 890 megawatts of new nuclear capacity, backed by more than $4.3 billion of Constellation investment, compared with the 690 megawatts in an Amazon deal announced the previous week, Quartz reported.

Constellation commits more than $4.3 billion

Constellation will fund work on turbines, steam generators and digital control systems at 11 nuclear units across Illinois, Pennsylvania and New Jersey. The upgrades are intended to put additional generation onto the PJM Interconnection grid. Google’s 20-year purchase agreement covers the new capacity produced by that work.

Before the announcement, Bloomberg reported that Google was set to pay Constellation $1 billion or more under a multi-year arrangement. Quartz’s figure of more than $4.3 billion refers to the investment Constellation plans to make in the plant upgrades.

Constellation’s shares were rising following the agreement, MarketWatch reported on 6 October. The companies said the 890 megawatts of additional capacity would be equivalent to the output of a new nuclear reactor, according to the publication.

Google adds 2,700 megawatts from existing plants

Google and Constellation also entered a separate 15-year supply agreement for an additional 2,700 megawatts from Constellation’s existing fleet in the PJM market. That electricity is distinct from the 890 megawatts the companies expect the upgrades to add.

The arrangements give Google a contract for newly added generation and another for supply from operating plants. The 20-year agreement covers new capacity expected from the reactor upgrades. Under the supply agreement, Constellation will provide power from its existing fleet over a shorter term.

Constellation said the new-capacity agreement was structured to align with PJM’s “Bring Your Own Power” proposal, which would give large electricity users a way to add generation without passing its costs to residential customers, Quartz reported. The company expects the work to sustain roughly 4,400 existing jobs and create approximately 7,200 construction jobs during the building period.

Gemini Enterprise joins Constellation’s operations

A five-year technology agreement adds an enterprise software component to the power purchases. Constellation plans to deploy Google Cloud and Gemini Enterprise in its operations, targeting site selection, power-flow modelling, asset-health monitoring and cybersecurity for operational networks.

The planned deployment gives Google a role at Constellation beyond buying electricity. The applications include site selection, power-flow modelling, asset-health monitoring and cybersecurity for Constellation’s operational networks. The technology agreement runs for five years, against 15 years for supply from existing plants and 20 years for the new-capacity purchase.

Amazon’s Calvert Cliffs contract offers a comparison

Amazon agreed to buy 690 megawatts from Constellation’s Calvert Cliffs plant in Maryland under a 20-year contract. That arrangement is expected to support more than $3 billion of infrastructure investment at the site, as AI Affairs reported on the Amazon agreement.

Google also has a nuclear agreement with NextEra Energy supporting the restart of the Duane Arnold reactor in Iowa, and another with Southern Co. tied to upgrades at two plants, Quartz reported. Those arrangements, like the new Constellation capacity, involve generation added through a restart or work at existing facilities.

Constellation expects to deliver the first uprate under its Google agreement by 2028.