Constellation Energy announced nuclear Power Purchase Agreements (PPAs) targeting AI data centers at firm 24/7 baseload rates.

Constellation Energy Corporation stands to benefit substantially from the rapid growth in clean electricity demand driven by artificial intelligence, which requires large amounts of reliable, around-the-clock power. The company's nuclear fleet delivers carbon-free electricity to support this surging demand while establishing long-term revenue visibility through major customer contracts.

The company has recently secured large clean-energy supply agreements with leading technology and commercial customers. Constellation Energy signed a 15-year power purchase agreement with Walmart for 176 megawatts of carbon-free electricity from the Dresden Clean Energy Center and a 20-year agreement with Microsoft linked to the restart of the Crane Clean Energy Center. The company also signed a 380 megawatt agreement with CyrusOne in Texas, with an option to expand by an additional 380 megawatts. These developments position the company to capitalize on AI-driven electricity demand growth.

To meet rising demand, Constellation Energy has submitted nearly 5,000 megawatts of new generation projects, including nuclear uprates, natural gas plants, and battery storage. The acquisition of Calpine further strengthens the company's ability to deliver reliable electricity by adding a large fleet of flexible natural gas power plants.

The company expects base earnings to grow by more than 20% annually through 2029, supported by long-term customer contracts, nuclear energy production tax credits, growing free cash flow, and increasing demand from hyperscale data centers.

The broader utility sector is responding to the same AI-driven dynamics. According to the International Energy Agency, AI-driven data centers are boosting demand for reliable electricity and driving investments in grids, transmission, renewables, and energy storage, creating significant long-term growth opportunities for utilities and power producers. Vistra has signed 20-year power purchase agreements with Meta for 2,600 megawatts of zero-carbon nuclear power, while AES Corporation expanded its Google partnership by signing 20-year agreements to supply co-located power for a Texas data center.