Shares of Constellation Energy (CEG) rose sharply Tuesday.
The utility inked a 20-year agreement with Meta Platforms (META) to supply more than a gigawatt of carbon-free nuclear energy—enough to power over 800,000 homes.The deal underscores the rising demand for reliable clean energy as AI drives Big Tech’s insatiable appetite for power.
Constellation stock climbed as much as 7% in early trading before settling up just over 1% by midday. The rally extended a strong May for the nuclear-focused utility, which has seen its shares jump nearly 30% in the past month.
At the heart of the agreement is Meta’s rapidly growing data center in DeKalb, Illinois, built to support its expanding AI infrastructure. The social media giant, now set to spend up to $72 billion next year on data center growth, is looking to secure clean energy sources to match its electricity use.
The Clinton Clean Energy Center in Illinois will deliver 1,121 megawatts of emissions-free nuclear power to Meta starting in 2027. The agreement allows the plant to operate for another two decades after state-level subsidies expire. Constellation plans to boost Clinton’s output by an additional 30 megawatts through upgrades and is exploring advanced small modular reactors at the site.
Urvi Parekh, Meta’s head of global energy, said the partnership ensures access to “clean, reliable energy” as the company scales its AI operations. “We are proud to help keep the Clinton plant operating for years to come,” she added.
A Lifeline for Clinton and the Local Economy
Clinton was once on the chopping block. In 2017, after years of financial losses, the plant was slated to close—only to be rescued by Illinois’ Zero Emission Credit program. That support expires in 2027, but Meta’s deal now provides a market-based lifeline.
Beyond clean energy, the agreement helps preserve 1,100 high-paying jobs, contributes $13.5 million in annual tax revenue, and sets aside $1 million for local nonprofits. Clinton employs over 530 workers directly and plays a critical role in regional grid stability. According to a study by The Brattle Group, shuttering the plant would have increased emissions by 34 million metric tons over 20 years and cost the Illinois economy roughly $765 million per year.
Joe Dominguez, CEO of Constellation, said the Meta deal highlights the value of preserving existing nuclear capacity. “Sometimes the most important part of our journey forward is to stop taking steps backwards,” Dominguez said.
Constellation’s recent resurgence comes as other nuclear stocks also post strong gains, helped in part by executive orders from the Trump administration aiming to quadruple U.S. nuclear output by 2050. The White House has also signaled a shift toward supporting advanced nuclear technology, including modular reactors.
The High Stakes of Clean Energy Financing
Constellation's announcement comes at a time of broader tension in clean tech financing. As JPMorgan’s Rama Variankaval put it, the traditional venture capital model doesn’t easily fit capital-heavy industries like nuclear and grid infrastructure.
While VC funding has poured into climate tech—some $120 billion between 2017 and 2022—most of it has gone into lower-cost, software-based solutions. Large-scale energy projects require deep, patient capital, especially as AI infrastructure demands soar.
Microsoft (MSFT), Amazon (AMZN), and Oracle (ORCL) have all made significant bets on nuclear to power their operations. Microsoft signed a major deal with Constellation in 2024 tied to reopening Three Mile Island, a deal expected to generate $785 million annually by 2030. Amazon spent $650 million acquiring a data center from a nuclear power provider last year. Oracle is designing its own nuclear-powered facility.
Bank of America’s Vivek Arya noted that energy access is becoming a bottleneck for AI deployment just as critical as the chips themselves. “Power remains a constraint,” he wrote in a recent client note.
Constellation’s pact with Meta may mark a turning point, offering a blueprint for how legacy utilities and tech giants can collaborate to keep the lights—and servers—on in a rapidly electrifying economy.
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