Google parent Alphabet (NASDAQ:GOOG) is nearing an agreement to purchase nuclear power from Constellation Energy (NASDAQ:CEG) under a multi-year contract potentially worth at least $1 billion, Bloomberg reported on Tuesday.
The agreement could be announced as soon as this week, according to people familiar with the discussions cited by Bloomberg. The report said the amount of nuclear generation capacity involved and its location had not been determined.
The potential transaction comes as technology companies seek additional electricity supplies for data centres, including infrastructure supporting artificial intelligence workloads.
The agreement remains under discussion, and the supplied material does not indicate that a final contract has been signed.
Technology Companies Seek Nuclear Power for Data Centres
Nuclear power can provide continuous electricity generation without direct operational emissions, making existing facilities one source of power being considered for data-centre requirements.
Recent agreements have largely involved existing nuclear facilities because new reactors can require a decade or more to receive permits and be constructed, while newer fission technologies are not yet widely deployed.
The reported Google agreement follows a transaction announced last week between Amazon.com and Constellation. Under that agreement, Amazon agreed to purchase 690 megawatts of nuclear power, including capacity resulting from an upgrade to Constellation’s Calvert Cliffs nuclear facility in Maryland.
Google Adds to Existing Nuclear Energy Agreements
Google has previously entered into agreements with other nuclear power producers.
Last year, the company agreed to purchase electricity from NextEra Energy as part of an arrangement intended to support plans to restart the Duane Arnold nuclear reactor in Iowa. The reactor has been closed since 2020.
Google also secured additional nuclear capacity from Southern Co. last month by funding upgrades at two nuclear power plants, according to the supplied material.
These agreements form part of efforts by technology companies to secure electricity supplies as data-centre power requirements increase.
Nuclear Sector Attracts Renewed Investment
The agreements come amid renewed interest in nuclear generation following a period in which the industry faced safety concerns and cost overruns.
According to the supplied material, rising electricity demand from data centres is contributing to increased interest in nuclear generation.
Governments are also considering nuclear power as they seek to meet growing electricity consumption while reducing emissions.