Constellation-Google deal will bring $4.3B investment, 890 MW new nuclear to PJM

Constellation Energy has signed deals with Google and Amazon to expand nuclear power output across the PJM grid, which supplies electricity to a large swath of the mid-Atlantic and Midwest, including Pennsylvania, New Jersey, Maryland, Illinois, and other states. The Google deal, backed by $4.3 billion in investment, will add 890 megawatts of nuclear generation by upgrading 11 existing reactors at six sites in Illinois, Pennsylvania, and New Jersey, with the first upgrade online in 2028. A separate $3 billion deal with Amazon will expand the Calvert Cliffs nuclear plant in Maryland by 190 megawatts, expected between 2030 and 2032.

These agreements are a response to a power shortage in PJM, which is short about 6.8 gigawatts of generating capacity as data centers drive up demand. Rather than build new power plants that could raise costs for ordinary customers, Constellation and the tech companies are paying privately to squeeze more output from plants that already exist. The deals also include provisions to reduce power use during times of grid stress.

For homeowners in PJM territory, this is mainly a sign that more electricity is coming to help meet rising demand from data centers, which could ease pressure on grid reliability in the next several years. The companies say the investment is designed to avoid pushing costs onto regular ratepayers, though no specific rate impact or rebate program is mentioned here. Homeowners curious about how growing electricity demand affects their own rates may want to watch for updates from their state utility commission.