Latest news with #ConstellationEnergy
Yahoo
2 hours ago
- Business
- Yahoo
Meta signs deal 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. Related: Three Mile Island nuclear reactor to restart to power Microsoft AI 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.' 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. 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
E&E News
a day ago
- Business
- E&E News
Texas signs off on proposed Constellation-Calpine merger
Texas regulators on Thursday approved Constellation Energy's proposed $26 billion acquisition of Calpine, pushing forward one of the most consequential power industry mergers in recent years. The sign-off from the Public Utility Commission of Texas helps pave the way for the nation's largest fleet of nuclear power plants to merge with one of the biggest operators of natural gas-fired generators. 'This approval from the Texas PUC brings us one step closer to creating the nation's premier platform for reliable, clean energy,' said Constellation CEO Joe Dominguez in a statement. He emphasized that the merged company would meet growing power demands in high-load regions like Texas, while advancing a 'secure and clean energy future.' Advertisement Constellation, already the nation's largest producer of zero-emissions electricity through its nuclear fleet, stands to gain a vast footprint in gas-fired and geothermal assets through Calpine. The resulting coast-to-coast platform aims to position itself as the leading provider of around-the-clock, sustainable power amid surging data center demand and the broader energy transition.
Bloomberg
a day ago
- Business
- Bloomberg
AI Infrastructure Trade Roars Back as Tech Giants Boost Spending
Shares of companies that provide infrastructure for artificial-intelligence development are soaring after a tumble earlier this year, as spending from Big Tech restores investor confidence in the volatile sector. Two baskets tracked by Goldman Sachs Group Inc. — one tracking AI data centers and electrical equipment stocks and another that follows shares of companies that supply power for data centers — are up 52% and 39% from their April lows, respectively. Individual standouts include Vertiv Holdings Co., which has notched a 94% gain since April 4, as well as Constellation Energy Corp., up 75% in that same period.
Yahoo
3 days ago
- Business
- Yahoo
Why Centrus Energy Stock Soared Higher This Week
Meta Platforms signed a massive 20-year deal with a nuclear energy provider, leading to investor enthusiasm across the industry. Bank of America initiated coverage of Centrus with a buy rating. Centrus is in a strong position to capitalize on the growing demand for nuclear power. 10 stocks we like better than Centrus Energy › Shares of Centrus Energy (NYSE: CCJ) are moving higher this week. The company's stock was up 11.5% at 1:08 p.m. ET from last Friday's close. The S&P 500 index and the Nasdaq-100 index were up 1.2% and 1.8%, respectively, at the same time. Centrus, a provider of enriched uranium to fuel nuclear reactors, saw its stock rise after the announcement of a major deal between Meta Platforms and Constellation Energy and after receiving a buy rating from Bank of America. Meta, the parent company of Facebook and Instagram, signed a deal earlier this week that will grant it access to all the energy output from the Clinton Clean Energy Center nuclear reactor in Illinois. The 1.1 gigawatt output is enough to power 800,000 homes. Meta and other tech companies are finding it difficult to access enough power to meet the incredible demands of AI, especially if they are to try to meet their respective climate goals. Nuclear power offers relatively cheap, consistent, and abundant power without pumping greenhouse gases into the atmosphere. The announced deal helped shares of Centrus move higher, as it was a clear signal that the AI industry will actively pursue nuclear energy solutions. Centus is in a strong position to capitalize on this accelerating demand for nuclear power. It is one of only two licensed producers of enriched uranium in the U.S., giving it a substantial moat. If the marketwide trend holds, and I think it will, Centrus will no doubt benefit. And while its stock is not cheap, I think its future income justifies it. Before you buy stock in Centrus Energy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Centrus Energy wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,395!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $858,011!* Now, it's worth noting Stock Advisor's total average return is 997% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Bank of America is an advertising partner of Motley Fool Money. Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bank of America, Constellation Energy, and Meta Platforms. The Motley Fool has a disclosure policy. Why Centrus Energy Stock Soared Higher This Week was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
CEG, OKLO, and SMR Get Set to Power the AI Boom via Nuclear Energy
The nuclear energy sector is experiencing a resurgence unseen in decades, driven largely by its potential to power the burgeoning AI revolution. Major technology companies such as Meta (META), Microsoft (MSFT), and Alphabet (GOOGL) are competing to secure reliable energy sources for their expanding data centers, and nuclear power's clean, consistent output has positioned it as a key player in this race. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Leading this revival are three companies—Constellation Energy (CEG), Oklo (OKLO), and NuScale Power (SMR)—each bringing a distinct approach to the nuclear landscape. Over the past year, all three have outperformed the market, capturing investor attention amid rising energy demand. Constellation Energy is the 800-pound gorilla of U.S. nuclear power, and it's just landed a deal that's got everyone's attention. Just two days ago, CEG signed a 20-year power purchase agreement with Meta to deliver 1.1 gigawatts from its Clinton Clean Energy Center in Illinois, starting in 2027. This isn't an ordinary contract, but rather a lifeline for a plant that was on the verge of closure when its zero-emissions credits expire. The deal, which also boosts Clinton's output by 30 megawatts, underscores CEG's ability to secure tech giants. Microsoft is already on board with a Three Mile Island restart. What makes CEG a one-of-a-kind destination for tech titans is its scale. With 94 reactors across the U.S., they're a one-stop shop for tech companies chasing net-zero goals while powering AI workloads. Their shift away from co-located data center plans to grid-connected projects, as noted in last month's update, indicates they're adapting to regulatory hurdles, such as FERC's rejection of expanded co-location deals. Moreover, the Meta deal demonstrates that CEG can pivot and still secure massive contracts. Sure, their stock's run-up makes it a bit daunting to be bullish on today, but with AI data centers projected to eat up 9% of U.S. electricity by 2030, CEG's infrastructure could be a cash cow in waiting. Currently, most analysts are bullish on CEG stock. The stock features a Moderate Buy consensus rating based on eight Buy and five Hold ratings assigned in the past three months. No analyst rates the stock a sell. CEG's average stock price target of $319.45 implies ~10% upside over the next twelve months, despite shares having already rallied 30% year-to-date. Oklo, the newest entrant in the nuclear energy space and backed by OpenAI's Sam Altman, is focused on small modular reactors (SMRs)—compact, flexible power plants ideally suited for data centers. The company's stock has surged 440% over the past year, fueled by high-profile agreements such as its December deal with Switch to supply 12 gigawatts through 2044. Additionally, a recent memorandum with Korea Hydro & Nuclear Power to advance their 75-megawatt Aurora Powerhouse fast reactor has further accelerated momentum. While Oklo remains pre-revenue and is currently investing heavily in technology development, with commercial operations still several years away, its 'power-as-a-service' model—where the company builds, owns, and operates reactors—could revolutionize how data centers secure reliable power without significant upfront costs. Recent executive orders easing nuclear regulations have also provided a regulatory boost. However, significant risks remain, including ongoing R&D challenges and the high costs of scaling production. For investors who believe SMRs are key to powering the AI revolution, Oklo's long-term vision holds considerable promise. On Wall Street, Oklo stock carries a Moderate Buy consensus rating based on six Buy and three Hold ratings. No analyst rates the stock a sell. Oklo's average stock price target of $54.40 implies about 15% upside potential over the next twelve months. NuScale Power holds a distinct advantage as the first U.S. company to secure Nuclear Regulatory Commission (NRC) approval for its small modular reactor (SMR) design—the 77-megawatt VOYGR module. But the company isn't resting on this milestone; it is rapidly advancing a 2-gigawatt agreement with Standard Power to supply data centers in Pennsylvania and Ohio. Despite posting losses as it invests in expanding its supply chain, NuScale's Q1 report revealed an impressive 857% year-over-year revenue increase. The recent Meta-Constellation Energy deal also boosted NuScale's stock, signaling strong market confidence in its role in nuclear's resurgence. What distinguishes NuScale from its competitors is its pragmatic approach. Its light-water reactor technology is more established and less experimental than Oklo's fast reactors, making it a safer candidate for near-term deployment. However, supply chain constraints and complex project coordination remain significant challenges that could delay progress. Still, with tech giants like Google and Amazon entering SMR agreements, NuScale's first-mover advantage positions it well to meet growing energy demands. Its factory-built, modular design aligns perfectly with data centers' requirements for scalable, reliable power. NuScale Power is currently covered by eight Wall Street analysts, who generally hold a bullish outlook. The stock carries a Moderate Buy consensus rating, reflecting five Buy ratings, two Holds, and one Sell over the past three months. However, SMR's average price target of $27.42 suggests approximately 12% downside potential over the next twelve months. The resurgence of the nuclear sector is no coincidence, as the soaring energy demands of AI are reshaping the industry landscape. Constellation Energy (CEG) brings scale, Oklo (OKLO) leads with innovation, and NuScale Power (SMR) holds a regulatory advantage. Each faces its own challenges—CEG's stock trades at a premium valuation, Oklo is still managing significant cash burn, and NuScale navigates operational risks. Nevertheless, the potential upside is substantial. With tech giants committing to multi-gigawatt agreements and nuclear capacity projected to quadruple by 2050, these companies are at the forefront of a transformative energy revolution and merit close attention. 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