Google Vows To Cover Full Cost Of Boosting Three States’ Nuclear Plants To Power Its AI Growth
By Daily Caller News Foundation (/journals/dcnf)
Google will pay to upgrade 11 nuclear reactors across three states — adding as much power as a new large reactor — as data center demand climbs.
The 20-year agreement with Constellation Energy, announced Tuesday, will add 890 megawatts at reactors in Illinois, Pennsylvania and New Jersey, with the first upgrade expected by 2028, the companies said. A Google spokesperson told the Daily Caller News Foundation the company will pay the full cost of the new power it needs.
“Under these nuclear uprate agreements, Google is covering Constellation’s costs to invest in new capacity, make necessary transmission upgrades, and manage ongoing operations,” the spokesperson said. “This ensures Google pays the full cost of the new generation required to meet its demand, while also supporting the ongoing operations of Constellation’s existing assets—costs that might otherwise be passed on to local ratepayers.”
Constellation did not immediately respond to the DCNF’s request for comment.
The reactors supply the PJM Interconnection, the grid operator serving 67 million people across 13 states and Washington, D.C., which has a shortfall of about 6.8 gigawatts in new power supply as data centers add to demand, Utility Dive reported.
The upgrades, known as uprates, swap in new equipment such as turbines and steam generators so existing reactors produce more power without building a new plant, according to the companies.
The upgrades will be made at the Braidwood, Byron, LaSalle and Quad Cities plants in Illinois, the Limerick plant in Pennsylvania and the Salem plant in New Jersey, which Constellation partly owns, a Constellation spokesman told Nuclear News.
About $2 billion of the investment is expected to go to the four Illinois plants and create about 4,200 construction jobs in the state, Republican Illinois state Sen. Sue Rezin said in a statement.
“This is a major investment in Illinois’ energy future and a recognition of the tremendous value of our nuclear fleet,” said Rezin, who helped lead efforts to end the state’s decades-old moratorium on new nuclear construction.
“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,” Constellation CEO Joe Dominguez said in a statement.
Constellation will invest more than $4.3 billion across six nuclear sites, creating about 7,200 construction jobs and sustaining about 4,400 existing jobs, the companies said. Google also signed a 15-year supply agreement covering 2,700 megawatts from Constellation’s existing plants in the region, which the companies said will keep those plants operating.
The companies called the deal a “direct response” to a PJM proposal for large power users to bring their own supply and said it fits the goals of the White House’s Ratepayer Protection Pledge.
Constellation signed a similar 20-year agreement with Amazon a week earlier to add 190 megawatts at Maryland’s Calvert Cliffs plant, bringing its new nuclear deals with the two tech companies to almost 1.1 gigawatts, Utility Dive reported.
Google agreed in September to help pay for similar upgrades at Georgia Power’s nuclear plants in a deal the utility said would protect its other customers.
Constellation shares rose almost 14 percent in morning trading Tuesday, according to Utility Dive.
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All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact licensing@dailycallernewsfoundation.org.