A US power utility company is positioned to secure a major nuclear energy deal, potentially following Three Mile Island, to power AI datacenter operations.

Constellation Energy has announced plans to restart the Three Mile Island nuclear plant, with operations slated to resume in 2028 subject to Nuclear Regulatory Commission approval, marking what industry observers describe as a watershed moment for the U.S. nuclear sector. The company's stock surged nearly 20% on the news, driven in part by a 20-year power purchase agreement signed with Microsoft, which will use the clean power to offset emissions from its artificial intelligence data centers. The Three Mile Island restart demonstrates the growing financial opportunity that nuclear power represents for utilities and their investors as AI infrastructure demand accelerates.

Vistra Corp., a power company headquartered outside Dallas, emerged as a lead contender for the next major data center nuclear deal, with its shares surging more than 14% following the Three Mile Island announcement. Previously an obscure name, Vistra shares have soared more than 175% this year, outpacing AI chip powerhouse Nvidia to lead the entire S&P 500. The company's position strengthened through its March acquisition of Energy Harbor for $3.4 billion, which brought two nuclear plants in Ohio and one in Pennsylvania into its portfolio. CEO Jim Burke told investors the company is having numerous conversations with customers about directly powering data centers with its plants and is "in due diligence for a number of sites," specifically highlighting Comanche Peak, a twin reactor nuclear plant with 2.4 gigawatts of capacity outside Fort Worth, Texas. Wall Street analysts have an average stock price target of $116.89 per share, implying 26% upside from Thursday's close of $92.52, while Jefferies initiated coverage with a buy rating, noting that "Vistra's years of acquisitions, rationalizations, and lessons learned about risk have positioned the company well for the power markets of today."

NextEra Energy and Dominion Energy are among other utilities positioned to benefit from growing nuclear demand from data centers. NextEra CEO John Ketchum told investors in July that the company is considering restarting the Duane Arnold nuclear plant in Iowa, stating "There would be opportunities and a lot of demand from the market if we were able to do something with Duane Arnold." NextEra shares were up 1.4% on Friday but have gained 37% year-to-date, with 62% of Wall Street analysts rating the stock equivalent to buy and an average price target of $83.94 per share. Dominion Energy CEO Robert Blue indicated the utility would consider locating a data center next to the Millstone nuclear plant in Waterford, Connecticut. Dominion has gained more than 22% this year, though nearly 80% of Wall Street analysts have placed the stock on hold. The broader utilities sector has gained approximately 25% this year, largely due to data center demand, with independent power producers like Vistra attracting particular investor interest as they dispatch power based on economics rather than regulatory constraints.