Powering AI: Here's what to know about Meta's new nuclear deal with Constellation Energy
Meta has signed a 20-year deal with Constellation Energy to keep open its Clinton Clean Energy Center nuclear facility in Illinois, a move that will help feed the tech giant's enormous power needs in the artificial intelligence era.
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The deal takes effect June 2027, right as Illinois's zero-emission credit (ZEC) program expires and the energy center loses its ratepayer-funded financial assistance for being a carbon-free facility.
By keeping the plant in operation until at least 2047, the center will directly provide power to the local grid and support Meta's clean energy goals of matching its energy use with solely renewable energy.
'This deal will expand Clinton's clean energy output by 30 megawatts through plant uprates, preserve 1,100 high-paying local jobs, deliver $13.5 million in annual tax revenue, and add $1 million in charitable giving to local nonprofits over five years,' Joseph Dominguez, president and CEO of Constellation, said in a statement.
Meta's deal comes as a number of Big Tech companies, including Microsoft, Amazon, and Google, are seeking out nuclear energy alternatives to power AI's growing demand.
Although the center will be using the power to support the regional grid in central and southern Illinois, the tech giant will purchase 1,121 megawatts of nuclear energy from the facility, nearly all the energy the center will have the capacity to produce.
Urvi Parekh, head of global energy at Meta, said the partnership will secure the clean reliable energy that is necessary to advance Meta's AI ambitions. 'We are proud to help keep the Clinton plant operating for years to come and demonstrate that this plant is an important piece to strengthening American leadership in energy,' Parekh said.
Following the announcement on Tuesday, Constellation's stock price (Nasdaq: CEG) increased around 1%. However, the stock was largely flat by midafternoon.
Shares in Meta Platforms (Nasdaq: META), parent company of Facebook, Instagram, and WhatsApp, were also flat on Tuesday.
This post originally appeared at fastcompany.comSubscribe to get the Fast Company newsletter: http://fastcompany.com/newsletters
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