Google (Alphabet) has signed a major contract to supply 3,590 megawatts of electricity with Constellation Energy in the largest power grid in the United States, PJM Interconnection. This grid serves 67 million people across 13 states and Washington, D.C. Of this amount, 890 megawatts is allocated to nuclear energy.
Increasing Energy Demand and Grid Challenges
The rising use of artificial intelligence and the expansion of data centers have significantly increased electricity consumption and carbon emissions by Google. Major tech companies are seeking to secure large amounts of energy for their data centers to meet this demand through unprecedented contracts and the revival of the nuclear industry in the United States. Unlike renewable sources, nuclear energy provides continuous and stable power.
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Data center energy consumption is projected to double by 2030, reaching around 945 to 980 terawatt-hours (TWh) per year. In some countries, such as the United States, these centers are expected to account for up to 12 percent of total electricity consumption by 2030, putting additional pressure on existing power grids.
Contract Details and Investments
The Google and Constellation contract includes capacity increases at several of the company's nuclear reactors in the Midwest and Mid-Atlantic regions of the United States. This 20-year agreement will support investments in new equipment and technology at 11 nuclear units owned by Constellation in Illinois, Pennsylvania, and New Jersey, enhancing thermal and electrical efficiency to provide additional reliable and stable power to the grid.
Constellation has announced that over $4.3 billion in new investment will be made as part of this contract, with electricity generated from the first upgraded plants expected to be delivered to the grid in 2028. This agreement has been proposed in response to PJM's call to "bring your power." The increasing demand for electricity due to the expansion of data centers has led to an increase in PJM capacity prices by more than 11 times since 2024.
This contract between Google and Constellation continues a series of announcements regarding nuclear energy from major tech companies. Google has also signed a contract to restart the NextEra Energy nuclear plant in Iowa. Constellation has also agreed to restart the Three Mile Island reactor in Pennsylvania to supply energy for Microsoft’s data centers.
Additionally, Constellation has a 20-year contract to supply 690 megawatts from the Calvert Cliffs nuclear plant in Maryland to Amazon and a virtual contract with Meta to supply 1,121 megawatts of energy.
The United States accounts for nearly 30 percent of global nuclear power generation, producing about 782,000 gigawatt-hours (GWh) of electricity with 94 active reactors, which supplies nearly 18 to 19 percent of total electricity consumption in the country. The last new nuclear reactor built in the United States is Vogtle Unit 4 in Georgia, which is expected to begin commercial operation in April 2024.
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