Google has signed a massive long-term electricity agreement with Constellation Energy as the technology giant races to secure enough reliable power for its rapidly expanding data centres and artificial intelligence infrastructure.
The agreement covers 3,590 megawatts (MW) of electricity and includes a 20-year deal for 890 MW of nuclear power, making it one of the largest corporate power agreements in the U.S. electricity market.
Google turns to nuclear power for AI expansion
Under the nuclear portion of the agreement, Constellation will upgrade 11 existing nuclear units across Illinois, Pennsylvania and New Jersey.
The upgrades are expected to add 890 MW of new nuclear capacity to the PJM Interconnection grid, with electricity from the first upgraded plant expected to become available in 2028.
Rather than constructing entirely new reactors, Constellation plans to increase the output and efficiency of existing facilities through equipment and technology upgrades.
The company says the project will require more than $4.3 billion in new investment.
Constellation estimates that the agreement will help sustain about 4,400 existing jobs and create approximately 7,200 construction jobs during the upgrade programme.
Deal covers another 2,700 MW
Google's agreement goes beyond nuclear energy.
The company has also signed a separate 15-year agreement for 2,700 MW of additional electricity from Constellation's generating fleet within the PJM market.
Unlike the nuclear agreement, that supply is not tied to a particular generation source. It is designed to provide Google with additional long-term electricity while giving Constellation greater revenue certainty for its operating power assets.
Combined, the two agreements amount to 3,590 MW of contracted power.
AI data centres are driving electricity demand
The agreement highlights one of the biggest challenges facing the rapid expansion of artificial intelligence: access to enormous amounts of reliable electricity.
Technology companies are building increasingly large data centres to train and operate AI models. Those facilities require electricity around the clock, putting additional pressure on already-constrained power grids.
PJM Interconnection, which serves all or parts of 13 states and the District of Columbia, has faced growing concerns over whether electricity supply can keep pace with demand.
PJM's management has proposed a "Bring Your Own Power" approach under which large data-centre customers would help provide their own electricity or face restrictions during periods of extreme grid stress.
Google and Constellation described their agreement as a model for adding new electricity supply alongside growing demand without relying on state or federal mandates.
Google and Constellation expand AI partnership
The deal also includes a technology component.
Constellation will use Google Cloud and Gemini Enterprise as part of a five-year technology partnership aimed at developing what the companies call an "AI for Energy" blueprint.
The companies plan to use artificial intelligence for areas including power-plant operations, site selection, power-flow modelling, maintenance and infrastructure planning.
They also intend to explore how AI can help protect critical energy infrastructure and improve the efficiency of the electricity grid.
The arrangement reflects a growing overlap between the technology and energy industries, with major technology companies increasingly investing directly in electricity generation and long-term power supply.
Nuclear power makes a comeback in the AI era
Google's agreement is part of a broader revival of nuclear power driven by the electricity requirements of the technology sector.
Microsoft has a deal connected to Constellation's planned restart of the Three Mile Island nuclear facility in Pennsylvania, while Google has separately backed efforts to restart the Duane Arnold nuclear plant in Iowa. Amazon has also recently signed a long-term nuclear power agreement with Constellation.
For technology companies, nuclear energy offers an important advantage: it can provide large amounts of electricity continuously, unlike renewable sources whose output varies with weather conditions.
For nuclear operators, long-term contracts with financially strong technology companies can provide the certainty needed to justify expensive investments in existing plants.
A major investment in America's power infrastructure
The Google-Constellation agreement therefore goes beyond Google's immediate electricity needs.
The additional 890 MW of nuclear capacity will become part of the PJM grid, increasing the amount of electricity available to other users as well.
Constellation said the agreement demonstrates how private investment can help expand America's power infrastructure while supporting growing demand from manufacturing, industrial electrification and digital infrastructure.
The companies also agreed to explore additional opportunities involving new clean-energy generation, battery storage and demand-response programmes across the United States.
As the AI industry continues expanding, access to electricity is increasingly becoming a strategic consideration alongside computing power, chips and data-centre capacity.
Google's latest agreement shows how technology companies are responding: by securing electricity years in advance and helping finance the infrastructure needed to produce it.
