Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) is reportedly on the verge of an agreement to buy nuclear energy from Constellation Energy Corp. (NASDAQ:CEG) amid growing demand to power data centers.
Google is set to pay Constellation $1 billion or more over a multi-year agreement, Bloomberg reported on Tuesday, citing people with knowledge of the matter. The deal is likely to be announced this week.
The publication did not offer details on the location of the nuclear capacity or the scale of the deal.
Alphabet and Constellation Energy did not immediately respond to Benzinga’s request for comments.
AI Boom Revives Interest in Nuclear Energy
The massive electricity requirement for the AI boom has boosted prospects for nuclear energy, which offers continuous emission-free power.
Earlier this month, Amazon.com, Inc. (NASDAQ: AMZN) signed a 20-year power purchase agreement with Constellation Energy to secure nuclear power from Maryland’s Calvert Cliffs plant. Under the deal, Amazon would purchase 690 megawatts of power from Calvert Cliffs, a 1,790-MW nuclear facility and Maryland’s only nuclear power plant.
The agreement is anticipated to support over $3 billion in infrastructure investment in Maryland, which includes about 190 MW of new emissions-free generating capacity expected to be online between 2030 and 2032.
In December, NextEra Energy, Inc. (NYSE: NEE) and Google Cloud expanded their long-standing energy and technology collaboration. The companies committed to developing multiple new gigawatt (GW)-scale data center campuses along with the required generation and capacity.
They also aimed to work together on NextEra Energy’s enterprise-wide digital transformation, using Google Cloud AI and infrastructure to boost the company’s technology innovation and AI deployment.
Price Action: On a year-to-date basis, Constellation Energy declined 24.24%, as per Benzinga Pro. On Monday, it closed 3.93% higher at $267.62.
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