Google is expanding its commitment to nuclear power as surging demand from AI and data centers puts growing pressure on the U.S. electricity grid. The technology giant and Constellation Energy announced on October 6 a long-term agreement designed to add 890 MW of new nuclear capacity to the PJM Interconnection grid, while securing additional electricity supply for Google’s expanding operations.

A 20-Year Nuclear Agreement Expands Existing Capacity

The agreement will support investments in new equipment and technology at 11 Constellation-owned nuclear units in Illinois, Pennsylvania and New Jersey. Rather than building an entirely new nuclear facility, the companies will increase the thermal and electrical efficiency of existing reactors through upgrades, a process known as nuclear uprates.

The additional 890 MW of capacity is equivalent to the output of a large conventional nuclear reactor or several Small Modular Reactors. The first uprate is expected to be delivered by 2028. Constellation said the project represents more than $4.3 billion in new investment and will help sustain roughly 4,400 existing jobs while creating approximately 7,200 construction jobs during the building period.

Google’s AI Expansion Raises the Stakes for Power Supply

The agreement reflects a broader challenge facing technology companies as AI infrastructure requires increasing amounts of reliable electricity. Nuclear power can provide firm, around-the-clock generation, making it particularly relevant for data centers whose electricity demand does not necessarily align with intermittent renewable generation.

The companies also signed a separate 15-year energy supply agreement covering an additional 2,700 MW from Constellation’s existing generation fleet in the PJM market. The structure is designed to provide greater revenue certainty for Constellation while ensuring that existing generating assets continue supplying electricity to the grid.

The PJM Interconnection serves 67 million people across parts of the eastern United States. Growing electricity consumption from manufacturing, industrial electrification and digital infrastructure has increased pressure to expand generation capacity while maintaining grid reliability.

Nuclear Power Becomes a Strategic Technology Partnership

The collaboration extends beyond electricity procurement. Constellation will deploy Google Cloud and Gemini Enterprise under an expanded five-year technology agreement to develop an “AI for Energy” framework. The initiative is intended to improve power-plant operations, optimize generation and help protect critical energy infrastructure.

The deal also creates a framework for Google and Constellation to evaluate additional opportunities involving clean generation, energy storage and demand-response technologies across the U.S. For Google, securing reliable power is increasingly becoming a strategic component of expanding AI infrastructure. For Constellation, long-term agreements with major technology companies can provide greater visibility for investments in existing nuclear assets.

The market will now watch the pace of the planned nuclear upgrades, the first capacity addition expected in 2028 and the evolution of electricity demand from AI data centers. If demand continues to rise, similar agreements between technology companies and nuclear operators could become an increasingly important source of private capital for expanding U.S. power capacity, while delays, regulatory hurdles or slower-than-expected AI growth could affect the pace of future projects.