Google parent company Alphabet (GOOGL) has signed a power deal with Constellation Energy (CEG) that’s worth $4.5 billion U.S.
The agreement will see Alphabet contract 3,590 megawatts of power from Constellation Energy, which runs America’s largest power grid.
Nuclear energy will account for about a quarter of the energy supplied to Alphabet for its artificial intelligence (A.I.) data centres, according to the two companies.
The deal will enable more than $4.3 billion U.S. of new investment by Constellation Energy and see capacity added at several of the power company's nuclear reactors throughout the U.S.
Alphabet is one of several technology companies that is racing to secure electricity to power A.I. data centres.
Constellation Energy previously announced an agreement to restart its Three Mile Island nuclear reactor in ?Pennsylvania with help from Microsoft (MSFT).
Now, Alphabet has entered into ?a 20-year power purchase agreement for 890 megawatts of electricity from multiple Constellation-owned nuclear power plants.
Electricity from the first of the nuclear power plants is expected to be delivered to Alphabet in 2028. The rest of the power will be supplied by traditional electricity sources.
Constellation Energy is the largest U.S. nuclear power plant operator and owns a major fleet of natural-gas-fired power plants across the country.
CEG stock is up nearly 10% on news of its deal with Alphabet. The company’s share price has declined 27% over the past 12 months to trade at $267.62 U.S. per share.
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