Google will fund expansion of nuclear generation in the US for AI energy needs

Google has entered into a 20-year agreement with American Constellation Energy, which provides for increasing the capacity of existing nuclear power plants in the US. The project is to provide the energy system with 890 MW of additional generation - approximately as much as one large nuclear reactor produces.

It is not about building new nuclear power plants, but about modernizing 11 Constellation power units at six nuclear sites in the states of Illinois, Pennsylvania and New Jersey. The company plans to upgrade turbines, steam generators, digital control systems and other equipment to increase the efficiency of already operating reactors.

Constellation estimates its new investments under the agreement at more than $4.3 billion. The first additional capacity is expected to appear in 2028. The project also envisages the creation of about 7.2 thousand jobs during construction and modernization works and preservation of about 4.4 thousand existing jobs.

Google explains the agreement primarily by the rapid growth of its own data centers. The increasing use of artificial intelligence requires more and more round-the-clock and stable electricity, so technology companies are increasingly turning to nuclear generation. According to Google, after this agreement, the total additional nuclear capacity in the US that the company has helped launch through modernization or restart of reactors will exceed 1.5 GW.

In addition to new generation, Google and Constellation signed a separate 15-year agreement on the supply of 2.7 GW of electricity from the company's existing assets in the PJM grid, which covers part of the eastern and central states of the US and serves about 67 million people.

The partnership goes beyond the purchase of electricity. Constellation will expand the use of Google Cloud and Gemini Enterprise in the management of nuclear assets for five years. Artificial intelligence is planned to be used for predicting the state of equipment, planning repairs, optimizing production and protecting critical energy infrastructure.

The agreement reflects a broader trend in the American energy sector: the growth of data centers and AI infrastructure is bringing back demand for nuclear generation. Large technology companies increasingly enter into long-term contracts with nuclear power plant operators or finance the increase in capacity of existing reactors instead of waiting for the construction of new plants.

Based on materials from: Constellation Energy, Google, The Wall Street Journal