Alphabet nears $1bn-plus nuclear power deal with Constellation, reports say
In short
Google parent Alphabet is close to a multi-year nuclear power purchase deal with US energy company Constellation, with the contract expected to total $1bn or more and an announcement possible as early as this week, according to people cited by CLS and Jiemian. The reported deal follows a 20-year agreement Constellation announced with Amazon for 690MW from the Calvert Cliffs nuclear plant in Maryland, including 190MW of new capacity.
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Alphabet, the parent company of Google, is close to a multi-year nuclear power purchase agreement with US energy company Constellation, with the total contract value expected to reach or exceed $1bn and an announcement possible as early as this week, according to people familiar with the matter cited by CLS and Jiemian. IT Home said Bloomberg had reported the same deal, describing it as worth at least $1bn. [ 1 , 2 , 3 ]
The reported agreement follows a comparable deal at Constellation. IT Home said the company announced on September 30 a 20-year nuclear power supply agreement with Amazon. Under it, Constellation would supply 690MW of electricity from its Calvert Cliffs nuclear plant in Maryland, including 190MW of new capacity due to come online between 2030 and 2032. CLS and Jiemian also cited the Amazon agreement, saying it was signed last week. [ 1 , 2 , 3 ]
According to IT Home, the Amazon agreement is expected to generate more than $3bn of infrastructure investment in Maryland, including upgrades to the Calvert Cliffs plant as a whole. The two companies also signed a related retail power agreement to support Amazon's operations in the PJM power market, which covers 13 states, the outlet said. [ 3 ]
Both business outlets framed the reported Alphabet deal as part of a rush by technology companies to secure electricity as their data centre operations expand. [ 1 , 2 ]
The details of the Alphabet agreement rest on unidentified sources, and the documents do not include confirmation from either Alphabet or Constellation, nor a final contract value. [ 1 , 2 , 3 ]
Why it matters
The reported agreements show large technology companies competing to secure long-term electricity supplies for expanding data centres, tying them to nuclear generation for decades. The Amazon contract, as described by IT Home, would also bring more than $3bn of infrastructure investment to Maryland through upgrades at Calvert Cliffs.
Key facts
- Alphabet, Google's parent, is close to a multi-year nuclear power purchase agreement with Constellation worth an expected $1bn or more, according to people familiar with the matter. [ 1 , 2 , 3 ]
- The Alphabet deal could be announced as early as this week, the reports said. [ 1 , 2 , 3 ]
- Constellation announced a 20-year nuclear power supply agreement with Amazon on September 30. [ 3 ]
- Under that agreement Constellation will supply Amazon with 690MW from its Calvert Cliffs nuclear plant in Maryland, including 190MW of new capacity due online between 2030 and 2032. [ 1 , 2 , 3 ]
- The Amazon agreement is expected to generate more than $3bn of infrastructure investment in Maryland, including upgrades to the Calvert Cliffs plant. [ 3 ]
- The two companies also signed a related retail power agreement to support Amazon's operations in the PJM power market, which covers 13 states. [ 3 ]
Confirmed by several sources
- Alphabet is close to a multi-year nuclear power agreement with Constellation with a contract value expected to reach or exceed $1bn, with an announcement possible this week, according to people familiar with the matter. [ 1 , 2 , 3 ]
- Amazon recently agreed to buy 690MW of power from Constellation, including new capacity obtained by upgrading the Calvert Cliffs nuclear plant in Maryland. [ 1 , 2 , 3 ]
Still unclear
- Whether the Alphabet–Constellation agreement will be announced this week and its final value The documents attribute this to unidentified people familiar with the matter and use expected figures; neither company is cited confirming the deal.
- Terms of the Amazon agreement beyond the reported 690MW and 20-year term, including the value of the power contract itself Only one document (IT Home) describes the Amazon agreement in detail; the two business outlets mention it only as context.
- Whether the Alphabet deal is a full agreement or still under negotiation The documents say Alphabet is approaching or close to a deal, not that it has been signed.
What local media are saying
Timeline, local time
- Constellation announces a 20-year nuclear power supply agreement with Amazon, according to IT Home. [ 3 ]
- Bloomberg reports that Alphabet is close to a nuclear power deal with Constellation worth at least $1bn, according to IT Home. [ 3 ]
- CLS reports that Alphabet is nearing a multi-year agreement with Constellation with a contract value expected to reach or exceed $1bn, possibly announced this week. [ 1 ]
- Jiemian publishes a matching report on the same reported deal and the Amazon agreement. [ 2 ]
- IT Home publishes additional detail on the Amazon agreement and attributes the Alphabet report to Bloomberg. [ 3 ]