Alphabet's Google is close to a multi-year agreement to buy nuclear energy from Constellation Energy worth $1 billion or more, Bloomberg News reported on Oct. 5, citing people familiar with the discussions. The deal could be announced as soon as this week, and if completed, it would be Google's largest nuclear power purchase to date — the latest sign of Big Tech racing to lock in electricity for the AI data-center boom.
Google could not be reached for comment outside regular business hours on Monday, while Constellation declined to comment. Bloomberg's sources spoke on condition of anonymity because the talks are private. The exact scale of the power purchase, which reactors would supply it, and where the electricity would flow have not been disclosed — details that will only become clear if and when the companies announce the deal.
The driving force is straightforward: AI computing is devouring electricity, and nuclear offers steady, nearly carbon-free baseload power. Google partnered with NextEra Energy last year to restart a nuclear plant in Iowa, and last month it signed a deal with Southern Co. to support upgrades at two of that utility's nuclear plants.
Google's power-shopping extends beyond the United States. In September, the company said it would invest at least €13 billion (about $15.1 billion) in AI infrastructure in Finland over the next two years — its biggest European investment — including a 22-year purchase agreement for up to 50% of the output of one of operator Fortum's two nuclear plants. Google President and Chief Investment Officer Ruth Porat summed up the strategy in Helsinki as "BYOP — bring your own power," calling it Google's first nuclear energy deal outside the United States.
For Constellation, the biggest U.S. reactor operator, Google would be the latest in a line of tech giants knocking on its door. The company has previously signed power deals with Amazon.com and Microsoft. Alphabet raised its global investment this year to between $195 billion and $205 billion to capture growing AI computing demand — and electricity is the hardest constraint in that arms race.
First, the length and pricing structure of the agreement — a long-term contract would let Google lock in power costs for years ahead. Second, which reactors supply the power, and whether the deal involves restarting retired units, which determines how much it actually adds to U.S. nuclear capacity. Third, whether the "bring your own power" model spreads from Finland to more markets. If the announcement lands this week as expected, expect another jolt for nuclear and power-equipment stocks.