Google has entered into a 20-year power purchase agreement with Constellation, a major US nuclear plant operator. The deal aims to upgrade six nuclear power plant sites, enabling Constellation to invest $4.3 billion in equipment. This initiative is expected to generate an additional 890 MW of power, equivalent to the output of one large reactor or three small modular reactors.
The upgrades will target 11 reactors across Illinois, Pennsylvania, and New Jersey, all connected to the PJM Interconnection grid. This network serves 13 states and the District of Columbia, including Loudoun County, Virginia, which hosts the nation's largest data center cluster. PJM has recently faced challenges meeting the high energy demand from data centers, leading to concerns over potential power outages.
In addition to the 20-year contract, Google signed a separate 15-year agreement with Constellation for 2700 MW of power from other facilities within the PJM network. This deal provides stable revenue for the operator, whose energy mix was 70 percent nuclear, 8 percent renewables, and 22 percent gas and oil as of last year. Natural gas currently holds the largest share in the PJM fuel balance.
The expansion of data centers has increased energy demand and prompted the development of new gas infrastructure in the US, complicating corporate environmental goals. Google reported a 37 percent increase in its electricity consumption last year, while its carbon emissions rose by 18 percent. Regulatory bodies like FERC have intervened to manage grid capacity and prevent consumer price hikes.
