Constellation, Google confirm nuclear energy deal tied to 890 MW of new PJM capacity (CEG:NASDAQ)

Google signed a 20-year deal with Constellation Energy for 3,590 MW, including 890 MW of new nuclear capacity. Constellation will invest $4.3B to upgrade 11 nuclear plants. Google aims to secure power for its data centers, with plans to spend up to $205B this year. Microsoft also partnered with Constellation to restart the Three Mile Island reactor.

Google and Constellation Energy have signed power purchase agreements totaling 3,590 MW. The deals include 890 MW from nuclear uprates and 2,700 MW from existing power generation in the PJM grid, according to the companies.

Google-parent Alphabet and Constellation Energy agreed to a $4.3 billion deal. Constellation will upgrade 11 nuclear units, adding 890 megawatts of capacity by 2032. Alphabet will buy power from Constellation for 20 years. Similar deals have been made by Amazon, Meta, and Microsoft.

Constellation Energy (CEG) stock rose 12% following a nuclear energy deal with Google, involving $4.3B in investments across six sites. The agreement aims to increase output by 890 MW by 2032, with Google as the anchor customer. CEG's market cap surged by $11.61B, reflecting investor optimism, though key financial details like the power price per megawatt-hour remain undisclosed.

Constellation Energy (CEG) shares rose 12% to $300.40 after announcing a partnership with Google to develop 890 MW of nuclear capacity, including a 20-year power purchase agreement. The company is slightly undervalued per GF Value™ at $304.59, with a GF Score™ of 82/100. Insiders have been net buyers.

The S&P 500, Dow, and Nasdaq hit record highs, with the S&P 500 up 0.6%. Strong corporate earnings, including Lamb Weston's quarterly beat, drove gains. Analysts expect S&P 500 earnings to grow 30% YoY. Bond yields eased, with the 10-year Treasury yield at 5.28%. Constellation Energy and Option Care Health saw significant gains.