Latest news with #ThreeMileIsland
Yahoo
7 days ago
- Business
- Yahoo
Will new nuclear energy deals generate FOMO mentality in Big Tech?
Constellation Energy (CEG) has inked a 20-year deal to provide tech giant Meta Platforms (META) with power from its clean nuclear energy plant starting in 2027. Mizuho Americas managing director and senior analyst of utilities Anthony Crowdell discusses the Constellation-Meta deal, as well as other energy agreements as grid demand soars to power AI data centers, and the regulation around nuclear plants after President Trump signed an executive order in May to ease restrictions around nuclear reactor development. Catch Yahoo Finance's interview with Nano Nuclear Energy founder, executive chairman, and president Jay Yu on the nuclear energy landscape. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. Constellation and Meta inked a 20-year power deal, and as part of it, the output from the Clinton Clean Energy Center in Illinois will support Meta's clean energy goals. The agreement comes as the social media giant's energy demand soared due to its AI data center expansion. Mizuho Americas Managing Director and Senior Analyst Anthony Crowdell joins us now to discuss. Anthony, this is just the latest. We've had these deals coming, um, sort of trickling out now. Um, what is your best estimate of the sort of terms of this deal, how it compares to what we've heard thus far and sort of what it could tell us about future deals? Sure. So, so lots to unpack there. Good afternoon. And I think, you know, when you think of the existing deals we've seen, maybe it's two. We saw the Talon Amazon deal, which was pricing around $70 a megawatt hour. That deal's still being challenged at the federal energy regulatory commission, but we'll include that deal and include the pricing of $70. The only other deal we really saw was the Microsoft Three Mile Island. And what was unique about that deal, that was about bringing new nuclear power on. It was the Three Mile Island plant, now called the Train Energy Center, bringing that back online. And when you look at the pricing there, it's probably about 90, 95 adding tax credits, clean energy credits. You're probably at a whopping like $145, but again, Microsoft paying that. So, there's been deals. This may be the third deal, or a third deal with nuclear plants, but each very unique. And so this is kind of the first deal, that's what we're going to use the term, in front of the meter, where we call it just like kind of a virtual PPA. And it takes the output of the Clinton Energy or Clinton nuclear plant in Illinois. And best we could do with pricing is maybe somewhere around $75 to $80 a megawatt hour. Um, very good price. Forward curve for power in that part of Illinois, around the clock, maybe somewhere $40ish dollars, $45. So there's a very nice contract, relative to where the forward curve is. Um, but it's the first contract we've really seen with existing nuclear plant, that's in front of the meter. Your question of what this means for additional contracts, I mean, that'll be interesting. Obviously, this is now the mark. Let's just call it $80. Uh, this will be the mark of where they're going to be judged at. But does this create a scarcity or FOMO mentality where other large tech now jump in to get that? That's what we want to see. But I think, seeing the stock price today, and you put a great chart on there, I think news it really spiked up, but maybe as people were maybe over their skis, thinking we saw $100 or referenced the Microsoft price earlier, $100 or north of $100. As that trickled down to maybe it's an $80 price, which is still attractive, but clearly fully priced in, I think we're looking at it right now, the stock is down a dollar. Anthony, I'm curious. The Trump administration, fans of nuclear. You saw the president signed that executive order late last month. What do you think the impact of that EO could be on the industry long term, Anthony? With, with the exception, if you think big tech comes in and tells a IPP, independent power producer or a utility, you could use our balance sheet to build a nuclear plant. Meaning any cost overruns you have with construction, supply chain issues, Google is going to underwrite all of that and said, we got you covered, bud. We're going to pay for any cost overruns. Aside from that, the executive order will mean absolutely nothing. I do not see, I mean, Constellation is the best operator in the space. They have the deepest nuclear bench. They are, if anyone's going to build a nuclear plant, it would be Constellation. And right now, Constellation said we are not building it on their balance sheet. Again, if Meta made a deal with them tomorrow that said, let's build the plant together and we will take all the risk and cost overruns, I think that's all you will see. So I'm not expecting you're going to see any real change in how many nuclear plants are being developed in this country right now. And it, so far, it's zero. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Guardian
7 days ago
- Business
- The Guardian
Meta signs agreement with nuclear plant to power AI and datacenters for 20 years
Meta on Tuesday said it had struck an agreement to keep one nuclear reactor of a US utility company in Illinois operating for 20 years. Meta's deal with Constellation Energy is the social networking company's first with a nuclear power plant. Other large tech companies are looking to secure electricity as US power demand rises significantly in part due to the needs of artificial intelligence and datacenters. Google has reached agreements to supply its datacenters with nuclear power via a half-dozen small reactors built by a California utility company. Microsoft's similar contract will restart the Three Mile Island nuclear plant, the site of the most serious nuclear accident and radiation leak in US history. Illinois helps subsidize Constellation Energy's nuclear plant, the Clinton Clean Energy Center, with a ratepayer-funded zero-emissions credit program that awards benefits for the generation of power virtually free of carbon emissions. That expires in 2027, when Meta's power purchase agreement will support the plant with an unspecified amount of money to help with relicensing and operations. The deal allows Constellation to expand Clinton, which has a capacity of 1,121 megawatts, by 30MW. The plant powers the equivalent of about 800,000 US homes. Clinton began operating in 1987 and last year Constellation applied with the US Nuclear Regulatory Commission to renew its license through 2047. The deal could serve as a model for other big tech companies to support existing nuclear while they also plan to power datacenters with new nuclear and other energy sources. Urvi Parekh, head of global energy at Meta, said: 'One of the things that we hear very acutely from utilities is they want to have certainty that power plants operating today will continue to operate.' Joe Dominguez, CEO of Constellation, said, 'We're definitely having conversations with other clients, not just in Illinois, but really across the country, to step in and do what Meta has done, which is essentially give us a backstop so that we could make the investments needed to relicense these assets and keep them operating.' Sign up to TechScape A weekly dive in to how technology is shaping our lives after newsletter promotion Bobby Wendell, an official at a unit of the International Brotherhood of Electrical Workers, said the agreement will deliver a 'stable work environment' for workers at the plant.
Globe and Mail
7 days ago
- Business
- Globe and Mail
Meta becomes the latest big tech company turning to nuclear power for its AI needs
WASHINGTON (AP) — Meta has cut a 20-year deal to secure nuclear power to help meet surging demand for artificial intelligence and other computing needs at Facebook's parent company. The investment with Meta will also expand the output of a Constellation Energy Illinois nuclear plant. The agreement announced Tuesday is just the latest in a string of tech-nuclear partnerships as the use of AI expands. Financial details of the agreement were not disclosed. Constellation's Clinton Clean Energy Center was actually slated to close in 2017 after years of financial losses but was saved by legislation in Illinois establishing a zero-emission credit program to support the plant into 2027. The Meta-Constellation deal takes effect in June of 2027, when the state's taxpayer funded zero-emission credit program expires. With the arrival of Meta, Clinton's clean energy output will expand by 30 megawatts, preserve 1,100 local jobs and bring in $13.5 million in annual tax revenue, according to the companies. 'Securing clean, reliable energy is necessary to continue advancing our AI ambitions,' said Urvi Parekh, Meta's head of global energy. Constellation, the owner of the shuttered Three Mile Island nuclear power plant, said in September that it planned to restart the reactor so tech giant Microsoft could secure power to supply its data centers. Three Mile Island, located on the Susquehanna River just outside Harrisburg, Pennsylvania, was the site of the nation's worst commercial nuclear power accident in 1979. Also last fall, Amazon said it was investing in small nuclear reactors, two days after a similar announcement by Google. Additionally, Google announced last month that it was investing in three advanced nuclear energy projects with Elementl Power. U.S. states have been positioning themselves to meet the tech industry's power needs as policymakers consider expanding subsidies and gutting regulatory obstacles. Last year, 25 states passed legislation to support advanced nuclear energy, and lawmakers this year have introduced over 200 bills supportive of nuclear energy, according to the trade association Nuclear Energy Institute. Advanced reactor designs from competing firms are filling up the federal government's regulatory pipeline as the industry touts them as a reliable, climate-friendly way to meet electricity demands from tech giants desperate to power their fast-growing artificial intelligence platforms. Amazon, Google and Microsoft also have been investing in solar and wind technologies, which make electricity without producing greenhouse gas emissions.
CTV News
7 days ago
- Business
- CTV News
Meta becomes the latest big tech company turning to nuclear power for its AI needs
This June 2, 2016 file photo shows the Clinton Clean Energy Center in Clinton, Ill. (John Dixon/The News-Gazette via AP) WASHINGTON — Meta has cut a 20-year deal to secure nuclear power to help meet surging demand for artificial intelligence and other computing needs at Facebook's parent company. The investment with Meta will also expand the output of a Constellation Energy Illinois nuclear plant. The agreement announced Tuesday is just the latest in a string of tech-nuclear partnerships as the use of AI expands. Financial details of the agreement were not disclosed. Constellation's Clinton Clean Energy Center was actually slated to close in 2017 after years of financial losses but was saved by legislation in Illinois establishing a zero-emission credit program to support the plant into 2027. The Meta-Constellation deal takes effect in June of 2027, when the state's taxpayer funded zero-emission credit program expires. With the arrival of Meta, Clinton's clean energy output will expand by 30 megawatts, preserve 1,100 local jobs and bring in $13.5 million in annual tax revenue, according to the companies. 'Securing clean, reliable energy is necessary to continue advancing our AI ambitions,' said Urvi Parekh, Meta's head of global energy. Constellation, the owner of the shuttered Three Mile Island nuclear power plant, said in September that it planned to restart the reactor so tech giant Microsoft could secure power to supply its data centers. Three Mile Island, located on the Susquehanna River just outside Harrisburg, Pennsylvania, was the site of the nation's worst commercial nuclear power accident in 1979. Also last fall, Amazon said it was investing in small nuclear reactors, two days after a similar announcement by Google. Additionally, Google announced last month that it was investing in three advanced nuclear energy projects with Elementl Power. U.S. states have been positioning themselves to meet the tech industry's power needs as policymakers consider expanding subsidies and gutting regulatory obstacles. Last year, 25 states passed legislation to support advanced nuclear energy, and lawmakers this year have introduced over 200 bills supportive of nuclear energy, according to the trade association Nuclear Energy Institute. Advanced reactor designs from competing firms are filling up the federal government's regulatory pipeline as the industry touts them as a reliable, climate-friendly way to meet electricity demands from tech giants desperate to power their fast-growing artificial intelligence platforms. Amazon, Google and Microsoft also have been investing in solar and wind technologies, which make electricity without producing greenhouse gas emissions. Matt Ott, The Associated Press
Associated Press
7 days ago
- Business
- Associated Press
Meta becomes the latest big tech company turning to nuclear power for its AI needs
WASHINGTON (AP) — Meta has cut a 20-year deal to secure nuclear power to help meet surging demand for artificial intelligence and other computing needs at Facebook's parent company. The investment with Meta will also expand the output of a Constellation Energy Illinois nuclear plant. The agreement announced Tuesday is just the latest in a string of tech-nuclear partnerships as the use of AI expands. Financial details of the agreement were not disclosed. Constellation's Clinton Clean Energy Center was actually slated to close in 2017 after years of financial losses but was saved by legislation in Illinois establishing a zero-emission credit program to support the plant into 2027. The Meta-Constellation deal takes effect in June of 2027, when the state's taxpayer funded zero-emission credit program expires. With the arrival of Meta, Clinton's clean energy output will expand by 30 megawatts, preserve 1,100 local jobs and bring in $13.5 million in annual tax revenue, according to the companies. 'Securing clean, reliable energy is necessary to continue advancing our AI ambitions,' said Urvi Parekh, Meta's head of global energy. Constellation, the owner of the shuttered Three Mile Island nuclear power plant, said in September that it planned to restart the reactor so tech giant Microsoft could secure power to supply its data centers. Three Mile Island, located on the Susquehanna River just outside Harrisburg, Pennsylvania, was the site of the nation's worst commercial nuclear power accident in 1979. Also last fall, Amazon said it was investing in small nuclear reactors, two days after a similar announcement by Google. Additionally, Google announced last month that it was investing in three advanced nuclear energy projects with Elementl Power. U.S. states have been positioning themselves to meet the tech industry's power needs as policymakers consider expanding subsidies and gutting regulatory obstacles. Last year, 25 states passed legislation to support advanced nuclear energy, and lawmakers this year have introduced over 200 bills supportive of nuclear energy, according to the trade association Nuclear Energy Institute. Advanced reactor designs from competing firms are filling up the federal government's regulatory pipeline as the industry touts them as a reliable, climate-friendly way to meet electricity demands from tech giants desperate to power their fast-growing artificial intelligence platforms. Amazon, Google and Microsoft also have been investing in solar and wind technologies, which make electricity without producing greenhouse gas emissions.
