Constellation Energy (CEG) soared on Tuesday, rising 7% after announcing a huge 20-year power purchase agreement with Meta. The deal, which will support Meta’s growing energy demands tied to its AI data center expansion, will also boost Constellation's Clinton nuclear facility in Illinois. The agreement is set to start in 2027, a significant milestone for Constellation and the broader push for nuclear energy in the tech industry.
This new partnership comes as part of Constellation's broader strategy to secure long-term power agreements, especially as demand for clean, reliable energy increases from tech companies investing heavily in AI infrastructure.
Meta's Push for Clean Energy and AI Expansion
Meta, which is heavily investing in AI and data centers, has been looking for reliable and sustainable sources of energy to meet its needs. The 20-year agreement with Constellation Energy will help power Meta’s operations in the region, specifically its AI data centers, including the recently opened Dekalb, Illinois facility.
Meta is on track to spend as much as $72 billion in 2025 to expand its AI infrastructure, with energy deals like this one playing an important role. As AI continues to drive tech company growth, securing clean and reliable energy is a priority. The agreement with Constellation reflects the broader trend among big tech companies to prioritize nuclear energy as part of their clean energy strategies, as it offers a stable and high-output solution to the energy needs of large-scale data operations.
Urvi Parekh, Meta’s head of global energy, highlighted the importance of these agreements, stating that “securing clean, reliable energy is necessary to continue advancing our AI ambitions.” This deal adds another layer to Meta’s energy strategy, as the company looks to power its rapidly growing AI data centers in an environmentally responsible way.
Constellation Energy's Growth and Market Impact
Constellation Energy’s stock has been on a strong upward trajectory, climbing 27% in May alone, driven by announcements of new power agreements and broader progress in the nuclear energy sector. The partnership with Meta, which includes a significant expansion of Constellation’s Clinton nuclear facility by 30 megawatts, has helped fuel the stock even higher.
The deal also highlights Constellation’s role in the fast-growing nuclear energy market, which has seen growing interest from tech giants in need of substantial, reliable power sources. This partnership follows a similar deal with Microsoft, which signed an agreement in 2024 to reopen the Three Mile Island plant to support its AI efforts. Together, these agreements highlight the increasing demand for clean energy in the tech sector, particularly from companies with massive energy requirements like Meta and Microsoft.
In addition to these high-profile deals, Constellation’s stock price has gained ground after a period of volatility in early 2025. The company’s stock reached its 52-week high of $337 on Tuesday, fueled by optimism surrounding its nuclear energy projects and clean energy agreements.
Nuclear Energy's Growing Role in AI and Tech Infrastructure
The push for clean energy in the tech sector is becoming urgent as AI infrastructure expands. Data centers, which power AI models and processes, are extremely energy-intensive and have often strained local power grids. As tech companies like Meta, Microsoft, Amazon, and Oracle move forward with their AI plans, ensuring a stable and clean energy supply has become an important need for continued growth.
Nuclear energy has emerged as a crucial component of these companies' long-term strategies to meet their energy demands. Constellation's ability to provide nuclear power to large-scale tech operations has positions the company as a key player in this transition. The agreements with major players in the tech industry demonstrate the sector's confidence in nuclear power as a solution to both energy reliability and sustainability.
With major tech companies committing to clean energy and AI growth, nuclear power deals are likely to continue as a focal point for both energy providers and tech firms. These partnerships offer a path to reduce the environmental impact of massive energy consumption while maintaining the power needed for cutting-edge technology.
Looking Ahead
As the tech industry continues to scale its AI capabilities, energy deals like Constellation’s partnership with Meta are likely just the start. Constellation’s stock will benefit from these long-term agreements, as the company becomes more important to the clean energy solutions that the tech sector depends on. For Constellation, the focus now shifts to expanding its nuclear capabilities and securing additional partnerships with other major players in the tech and energy sectors. As the market adapts to the growing energy demands of AI, Constellation’s ability to provide clean, reliable nuclear power could position it for continued growth in the coming years.
