Google, Constellation Energy Strike 3.59-GW Power Deal

11:18 AM EDT, 10/06/2026 (MT Newswires) -- Alphabet's (GOOG, GOOGL) Google and Constellation Energy (CEG) said Tuesday they are collaborating on 3,590 megawatts of power as part of a long-term energy strategy to meet demand and improve grid reliability. The partnership includes a $4.3 billion investment by Constellation in new equipment and technology at its 11 nuclear units in Illinois, Pennsylvania, and New Jersey, generation of 890 megawatts of new nuclear energy, and a 20-year power purchase deal, according to the companies. The new capacity will be added to the PJM Interconnection grid while sustaining about 4,400 existing jobs and creating nearly 7,200 new construction jobs, the companies added. PJM is a regional transmission organization that coordinates wholesale electricity in all or parts of 13 states and the District of Columbia. Additionally, Google agreed to a 15-year energy supply deal for another 2,700 megawatts of power from Constellation in PJM's fleet. Constellation's shares jumped more than 13% in Tuesday trading, reducing their year-to-date loss to about 14%. Alphabet's class A and C shares were up about 0.3% each. "We're committed to meeting our growth responsibly by actively investing in clean, reliable power that brings new capacity to our nation's grids," Google's global head of energy and power Amanda Peterson Corio said in a statement. "This long-term clean energy collaboration with Google can serve as a model for how technology companies and the energy industry can work together to responsibly develop the digital economy and invest in our nation's energy infrastructure in a way that delivers grid-wide benefits for all, funded by private entities," Constellation Chief Executive Joe Dominguez said. The deal addresses PJM's "bring your own power" proposal, which requires data centers to either bring or contract their own new generation capacity or face shutoff or reduction during peak demand, the companies said. The collaboration mirrors previous landmark agreements between tech giants and energy providers, such as Microsoft's (MSFT) 20-year power purchase agreement with Constellation in September 2024 to restart Pennsylvania's Three Mile Island Unit 1 under the Crane Clean Energy Center initiative. Similarly, Meta Platforms (META) inked a 20-year deal with Constellation in June last year to purchase 1,121 megawatts of nuclear energy from its Clinton Clean Energy Center in Illinois. In June, Amazon (AMZN) also entered into a long-term agreement with Talen Energy (TLN) to supply up to 1,920 megawatts of nuclear power from the Susquehanna nuclear power plant for Amazon Web Services' data center infrastructure. Alphabet reported second-quarter revenue ahead of Wall Street's estimates in July amid demand for artificial intelligence infrastructure, while the technology giant's capital expenditure doubled year over year. In August, Constellation raised its full-year adjusted operating earnings outlook following a second-quarter earnings beat. Price: 344.37, Change: +0.54, Percent Change: +0.16