The 20-year agreement will support nuclear capacity upgrades across the PJM grid as demand for electricity from data centers continues to grow.
Constellation Energy and Google have reached a 20-year power purchase agreement that will support 890 megawatts of additional nuclear generation in the PJM electricity market.
The agreement comes as data centers and artificial intelligence projects drive a sharp increase in electricity demand across the United States. Constellation plans to add the new capacity by upgrading 11 existing nuclear units at six sites in Illinois, Pennsylvania and New Jersey.
The first upgraded unit is expected to begin producing power.
Nearly 1.1 GW of nuclear capacity backed by new deals
The Google agreement follows a separate deal between Constellation and Amazon announced the previous week.
Together, the two agreements support nearly 1.1 gigawatts of additional nuclear capacity.
Under the Google agreement, Constellation expects to invest about $4.3 billion in the nuclear upgrades. Google will also purchase 2,700 MW of power from the PJM market under a separate 15-year supply agreement.
Constellation’s agreement with Amazon centers on a 190-MW expansion at the Calvert Cliffs nuclear plant in Maryland. The project is expected to receive about $3 billion in investment and could begin operating between 2030 and 2032.
Data centers put pressure on the PJM grid
The new nuclear agreements come as PJM Interconnection faces a growing need for additional generation.
PJM currently has a capacity shortfall of about 6.8 GW, while electricity demand from data centers continues to increase. The grid operator has also been working on ways to maintain reliability as large technology customers add new loads.
Constellation said the Google agreement is designed to help address these challenges while supporting the continued operation and expansion of nuclear power.
The agreement will also include demand response and load management measures. These tools can help reduce electricity use during periods when the grid is under heavy pressure.
Construction jobs and technology investment
The nuclear upgrades are expected to support about 4,400 existing jobs across the six sites and create roughly 7,200 temporary construction positions.
The partnership also goes beyond electricity supply. Google and Constellation plan to use Google Cloud and artificial intelligence tools in areas including power modeling, site selection, permitting, grid connections and plant operations.
Constellation also plans to integrate Google’s Gemini Enterprise technology into parts of its operations.
The deals highlight the growing connection between the technology and energy industries. As AI and data centers require more electricity, technology companies are increasingly looking for long-term power supplies that can provide reliable energy while supporting grid stability.
