Google has entered into a long-term agreement with Constellation to upgrade 11 nuclear reactors at six sites in Illinois, Pennsylvania, and New Jersey, in an effort to secure additional electricity for its data centers, which are consuming increasing amounts of energy. The power purchase agreement runs for 20 years and aims to provide revenue to help Constellation finance efficiency upgrades at existing plants.
According to the two companies, the new equipment could collectively add 890 megawatts of nuclear capacity over the next five years—an amount roughly equivalent to the output of one large new nuclear reactor or three small modular reactors. Constellation said the agreement represents more than $4.3 billion in new investment at these sites.
Direct Connection to the PJM Grid
The six sites are connected to the PJM Interconnection, the largest electricity grid in the United States, spanning 13 states and the District of Columbia, including Loudoun County, Virginia, one of the country’s largest data center hubs.
PJM has faced growing pressure as demand linked to AI data centers has increased. An independent market monitor filed a complaint with the Federal Energy Regulatory Commission (FERC) last year, warning that the grid could allow massive data centers to connect without being able to serve them reliably, potentially increasing the risk of power outages.
The Donald Trump administration and governors of states within the PJM region also issued a joint statement in January calling for an “emergency” power auction to support the construction of new plants through long-term contracts. The auction was later postponed after FERC directed PJM to review its proposal and strengthen safeguards preventing data centers from imposing additional bill increases on other customers. Electricity prices in states connected to the grid, including New Jersey, rose by 54% over five years.
Another Agreement with a Broader Scope
In addition to the nuclear deal, Google signed a separate 15-year agreement with Constellation to ensure ongoing revenue for other plants operated by the company within the PJM grid, regardless of fuel type. The second agreement has a capacity of 2,700 megawatts, far greater than the nuclear power agreement.
Nuclear power accounted for 70% of Constellation’s total generation capacity last year, compared with 8% for renewable energy sources and 22% for gas and oil, according to the company’s latest sustainability report. Gas remains the largest component of PJM’s fuel mix.
Why Does This News Matter?
The deal reflects the shift in AI data center expansion from a computing-capacity issue to a long-term electricity infrastructure issue. Investing in existing nuclear plants could add capacity faster than building new facilities, but it does not resolve questions concerning the allocation of grid costs, the reliability of connections, and the impact of demand on customer prices.
The deal also reveals tension between technology companies’ energy needs and sustainability goals. Google’s carbon emissions rose by 18% last year, alongside a 37% increase in electricity demand. The nuclear agreement alone does not guarantee that data center expansion will be free of fossil fuels, particularly because the second agreement covers plants using different fuels and new gas infrastructure projects are growing to support demand from data centers.