Google has contracted for 3,590 megawatts of power from Constellation Energy in the US' largest power grid, with new nuclear capacity covering about a quarter of that supply. The agreement enables more than $4.3 billion in new investment and adds generating capacity at several of Constellation's nuclear reactors in the Midwest and Mid-Atlantic.
Google has contracted for 3,590 megawatts of power from Constellation Energy in the PJM Interconnection, the largest power grid in the US, with new nuclear energy accounting for about a quarter of that supply. The deal enables more than $4.3 billion of new investment by Constellation and adds capacity at several of the company's nuclear reactors in the Midwest and Mid-Atlantic regions.
A 20-year nuclear agreement plus a long-term supply deal
Google entered into a 20-year power purchase agreement for 890 megawatts of electricity from multiple Constellation-owned nuclear plants, which will be upgraded to produce more electricity from existing reactors. Electricity from the first upgraded plant is expected to be delivered in 2028.
Google also signed a long-term supply agreement for an additional 2,700 megawatts of power from Constellation in PJM. That power is not tied to a specific generation source and instead serves as long-term revenue certainty for Constellation's operating plants, Google said. The 11 nuclear units expected to be upgraded under the arrangement sit in Illinois, Pennsylvania, and New Jersey, within PJM's footprint.
Part of a broader race to secure power for data centers
Major tech companies are racing to secure large amounts of electricity to power data centers across the US by striking deals directly with power companies. Over the last two years, Constellation agreed to restart its Three Mile Island reactor in Pennsylvania to serve Microsoft data centers, while Google separately contracted to restart NextEra Energy's nuclear plant in Iowa.
Maryland-based Constellation is the largest US nuclear power plant operator and also owns a large fleet of natural-gas-fired power plants.
A response to PJM's grid proposal
PJM management has proposed requiring data center customers connected to its 13-state grid to either bring their own power or face being shut off from grid power remotely during times of peak demand. The companies said the deal between Google and Constellation responds to PJM's "bring your own power" proposal.
According to Reuters, Amanda Peterson Corio, Google's global head of energy and power, said in a statement: "We're committed to meeting our growth responsibly."
Source: Investing.com
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