Google and Constellation Energy Corporation, an American energy company, have signed a 20 year power purchase agreement (PPA) to add 890 MW of nuclear capacity to the PJM Interconnection grid through upgrades at 11 existing nuclear units in Illinois, Pennsylvania and New Jersey. The timing of the move is interesting, as it comes amidst growing concerns over data center sustainability and an increased push for use of renewable energy.
In wake of these concerns and protests, data centers are increasingly investing in captive power generation units, and engaging in grid offsets to mitigate the pressure on power sources. PJM is the largest power grid operator in the United States, serving 67 million customers from Chicago to New Jersey.
According to a press release, the project will require more than US$ 4.3 billion in investment by Constellation and a separate 15 year agreement will cover 2,700 MW from Constellation’s existing generation fleet in PJM, providing long term revenue support for the continued operation of those facilities. The upgrades will involve modernizing turbines, steam generators and digital control systems to improve plant efficiency. The first additional capacity is expected to come online by 2028.
In a May 2026 report titled Data Centers and their Energy Consumption, the US Congress quoted the findings of a report by Lawrence Berkeley National Laboratory. It found that just in 2023, data center annual energy use (not accounting for cryptocurrency) across the country, was approximately 176 terawatt-hours (TWh), which comes to approximately 4.4 percent of U.S. annual electricity consumption that year
Amanda Peterson Corio, global head of energy and power, Google, said, “We’re committed to meeting our growth responsibly by actively investing in clean, reliable power that brings new capacity to our nation’s grids, our agreement with Constellation to fund nuclear reactor uprates will strengthen the PJM grid, which serves 67 million people.”
“Preserving and expanding the output of the existing nuclear fleet and developing new clean generation is critical to meeting our nation’s growing energy needs while keeping costs affordable for homes and businesses,” said Joe Dominguez, Chairman, President and CEO, Constellation. “This long-term clean energy collaboration with Google can serve as a model for how technology companies and the energy industry can work together to responsibly develop the digital economy and invest in our nation’s energy infrastructure in a way that delivers grid-wide benefits for all, funded by private entities.”
The companies also agreed to explore additional clean energy, storage and demand response projects, initially focusing on PJM.
Separately, a five year technology agreement will see Constellation integrate Google Cloud and Gemini Enterprise AI tools into its operations. Planned applications include power flow modelling, project planning, plant maintenance, outage management and cybersecurity for critical energy infrastructure.