Business & Markets
Google backs 890 megawatts of Constellation nuclear upgrades
Constellation expects the first uprate by 2028 and plans more than $4.3 billion in investment. The companies also signed a separate agreement for existing power, which does not add new generation capacity.
Executive summary
- 890 MW of new capacity: Google and Constellation announced a 20-year power purchase agreement supporting 890 megawatts of additional nuclear capacity on the PJM grid. Constellation plans to increase output at 11 units across six sites in Illinois, Pennsylvania and New Jersey. The first uprate is expected by 2028; the wider program is due before the end of 2032.[1][2][3]
- A separate 2,700 MW contract: The companies also agreed to a 15-year supply contract for 2,700 megawatts from Constellation's existing PJM fleet. It is not tied to specific generating units and is not additional capacity. Reuters reported that the two agreements cover 3,590 megawatts in total, including the 890 MW of new output.[1][4]
- Investment and grid pressure: Constellation says it expects to invest more than $4.3 billion in the upgrades. Utility Dive reported that PJM faces a roughly 6.8-gigawatt capacity shortfall as electricity demand rises, including from data centers. The announced new capacity is expected over several years, not immediately.[1][3]
The 20-year power purchase agreement supports upgrades intended to add 890 megawatts of nuclear generation to the PJM Interconnection grid. Constellation said the work will modernize equipment at 11 reactor units across six sites in Illinois, Pennsylvania and New Jersey. It expects the first uprate by 2028 and the program to deliver capacity before the end of 2032. The megawatts are planned increases at operating plants, not output already available to the grid.[1][2][3]
A second agreement covers 2,700 megawatts of supply from Constellation's existing PJM fleet for 15 years. The companies have not tied that amount to particular plants or fuel sources. Reuters reported the combined contracts total 3,590 megawatts, but only 890 megawatts represent new nuclear capacity under the announced uprates.[1][4]
The American Nuclear Society reported that sites involved include Braidwood, Byron, LaSalle and Quad Cities in Illinois, Limerick in Pennsylvania, and Salem in New Jersey. Constellation has not identified which reactor units will receive upgrades. It owns a 43% interest in Salem, according to the society's report, so the work spans facilities with different ownership structures.[5][1]
PJM operates the largest U.S. wholesale electricity market, serving 13 states and the District of Columbia. Utility Dive reported the grid operator is short about 6.8 gigawatts of capacity as demand grows, with data-center loads adding pressure. Uprates can add output at existing sites, but the full 890 megawatts are not expected at once; Constellation's first delivery estimate is 2028.[3][2][1]
Constellation expects to invest more than $4.3 billion across the upgrades. The companies say the agreement is structured to add supply alongside Google's growth without shifting its costs to residential customers. That is their stated goal; the releases do not provide a rate-impact analysis for individual households or explain how all grid costs will be allocated as demand changes.[1][2]
The announcement also expands a five-year technology agreement under which Constellation plans to use Google Cloud and Gemini Enterprise in power-plant operations. The companies say the software will support work such as upgrade planning, outage management and infrastructure security. These are planned uses; the announcement does not report measured gains in generating capacity or grid reliability from the software.[1][2]