Google is close to striking a deal to buy nuclear power from Constellation Energy Corp, for its data centres, as tech gaints look for more reliable electricity to support the rapid growth of artificial intelligence.The Alphabet Inc. company could pay $1 billion or more under a multi-year agreement with Constellation, according to people familiar with the talks, as cited by Bloomberg. The deal could be announced as soon as this week. The people asked not to be named because the discussions are private.The possible deal would add to the company’s already existing agreements with nuclear power companies. Last year, Google agreed to buy electricity from NextEra Energy Inc. The deal will support the company’s plans to restart the Duane Arnold reactor in Iowa, which has been shut since 2020.Google also reached an agreement with Southern Co. last month for new nuclear capacity by funding upgrades at two nuclear plants. The tech firm’s talks with Constellation come as technology companies face rising electricity needs from the artificial intelligence boom and growing data-centre demand.
Why tech cos are turning to nuclear power?
Nuclear power can provide electricity around the clock and does not produce emissions. Recent deals have mainly focused on existing nuclear plants because building new reactors can take a decade or more, including the time needed for permits and construction.The next generation of nuclear technology is also still expected to be years away from being widely deployed.Amazon.com Inc. agreed last week to buy 690 megawatts of power from Constellation. The deal includes capacity from an upgrade to the Calvert Cliffs nuclear facility in Maryland, Bloomberg reported.Microsoft Corp. agreed in 2024 to buy power from the shut Three Mile Island nuclear plant in Pennsylvania, where Constellation is planning to restart the reactor by next year.Nuclear energy has gained interest again in recent years after safety concerns and high costs reduced interest in it earlier last decade.Growing demand for electricity from data centres has also increased interest in nuclear power. Apart from companies, many countries are also turning to nuclear energy to meet rising power demand while reducing emissions.
