Amazon signs 20-year nuclear deal with Constellation

This agreement is part of a wider wave of nuclear power deals by technology companies seeking reliable electricity for AI data centers. Last week, Southern Company's Georgia Power and Alphabet's Google announced an agreement to support nuclear power uprates at the Vogtle and Hatch plants, aiming to increase clean electricity supplies for Google's data centers. In January, Alibaba Group Holding entered a nuclear power partnership in China, and Meta Platforms and Microsoft have also made nuclear power agreements.

The Amazon deal stands out for its size and duration, and it is expected to support Constellation's efforts to renew Calvert Cliffs' operating license for another 20 years. The plant currently supplies about 80% of Maryland's clean electricity, according to the companies, and its two reactors generate enough electricity to power more than 1.3 million homes.

Market commentator the Kobeissi Letter estimates global electricity demand from AI could surge more than 1,100% by 2033 to about 315 gigawatts, with the U.S. accounting for roughly 200 gigawatts of the increase. The outcome of this deal hinges on whether the new emissions-free generating capacity comes online between 2030 and 2032, and for Maryland and Constellation it represents a bet that long-term private commitments can extend the life of existing nuclear infrastructure.