Google’s Data Centers Seek Nuclear Energy to Meet High Power Demands

Google has struck a significant deal to enhance six nuclear power plant sites across the United States, aiming to boost electricity generation for its energy-intensive data centers. This 20-year agreement with Constellation, the top nuclear power operator in the country, is designed to secure the necessary revenue for efficiency upgrades at existing plants, representing over $4.3 billion in new investments.

In the next five years, the collaboration is expected to introduce new equipment that will collectively add 890 megawatts of nuclear capacity across the sites. This increase is roughly equivalent to the output of a large new nuclear reactor or three small modular reactors, as noted by both Google and Constellation.

The modernization efforts will focus on 11 reactors located at six sites in Illinois, Pennsylvania, and New Jersey, all of which are linked to the PJM Interconnection grid. This grid is the largest in the US, covering 13 states and the District of Columbia, including Loudoun County, Virginia, which hosts the nation’s largest data center hub.

PJM has faced challenges in meeting the rising demand from AI data centers. An independent market monitor raised concerns last year with the Federal Energy Regulatory Commission (FERC), indicating that PJM was planning to allow large data centers to connect to the grid without the capacity to serve them reliably, potentially leading to blackouts.

In response, the Trump administration and governors from PJM states called for an “emergency” power auction to facilitate the development of new power plants through long-term contracts. Recently, PJM postponed its auction after FERC directed it to revise its proposal to ensure better protections against data centers increasing electricity costs for other consumers. Electricity prices have surged in PJM-connected states, with New Jersey experiencing a 54 percent increase over the past five years.

In addition to the nuclear agreement, Google has also secured a separate, larger 15-year energy supply contract with Constellation. This deal aims to ensure ongoing revenue for other existing power plants operated by Constellation within PJM, regardless of their fuel sources. Last year, nuclear energy accounted for 70 percent of Constellation’s total generating capacity, with renewables contributing 8 percent and gas and oil making up the remaining 22 percent, according to the company’s sustainability report. Notably, gas represents the largest portion of PJM’s fuel mix, and this second deal, at 2,700 MW, is significantly larger than the nuclear power purchase agreement.

The demand from data centers is driving a wave of new gas infrastructure projects across the US, pushing many tech companies away from their sustainability objectives. Google reported an 18 percent increase in carbon emissions last year, alongside a 37 percent rise in electricity demand, as highlighted in its latest sustainability report.