Google (GOOGL.US) spends $4.3 billions on electricity, securing 3,590 megawatts of long-term energy from Constellation Energy (CEG.US).

According to Jinse Finance APP, Google (GOOGL.US) has signed a contract with Constellation Energy (CEG.US), the largest power grid operator in the United States, to purchase 3,590 megawatts of electricity, with newly built nuclear power accounting for about a quarter of this supply.

The two companies stated that the agreement will bring in more than $4.3 billion of new investment for Constellation and involves upgrading several nuclear reactors owned by the power company in the Midwest and Mid-Atlantic regions.

Large tech companies are racing to secure vast supplies of electricity across the United States to power data centers, reaching unprecedented agreements with American power companies.

In the past two years, Constellation announced an agreement to restart the Three Mile Island nuclear reactor in Pennsylvania to serve Microsoft’s data center, while Google signed a deal to restart NextEra Energy’s nuclear plant in Iowa.

In the latest package of arrangements, Google has signed a 20-year power purchase agreement to procure 890 megawatts of electricity from multiple Constellation-operated nuclear plants. These nuclear plants will be upgraded to produce more power from existing reactors.

The two companies stated that power from the first upgraded plant is expected to be delivered in 2028.

Google has also signed a long-term supply agreement to purchase an additional 2,700 megawatts of electricity from Constellation in the PJM region. Google noted that this portion of electricity is not tied to a specific source and is intended to provide long-term revenue certainty for Constellation’s operating plants.

Headquartered in Maryland, Constellation is the United States’ largest nuclear power plant operator and also owns a fleet of large natural gas power plants.

Amanda Peterson Corio, Google’s Global Head of Energy and Electricity, said in a statement, “We are committed to responsibly meeting our own growth, actively investing in clean, reliable electricity, and bringing new capacity to our country’s power grid.”

As part of the deal with Google, 11 nuclear units expected to be upgraded are located in Illinois, Pennsylvania, and New Jersey, within the coverage area of PJM Interconnection, the largest power grid in the United States.

PJM management has proposed that data center customers connected to the power grid in 13 states either provide their own electricity or face the risk of being remotely disconnected from the grid during peak usage times.

The two companies stated that the agreement between Google and Constellation is a direct response to PJM's “bring your own power” proposal.