Google backs $4.3bn nuclear upgrades to supply expanding data centres
Google has signed a 20-year agreement with Constellation to help fund upgrades at six existing US nuclear power plant sites, aiming to add electricity for its expanding data centres. The deal matters because growing demand from AI data centres is putting pressure on the PJM grid, where concerns about reliable supply and rising bills have prompted disputes over new power connections and power auctions.
The upgrades will modernise 11 reactors in Illinois, Pennsylvania and New Jersey, adding a projected 890 megawatts of capacity over five years. Constellation says the nuclear agreement represents more than $4.3 billion in investment; a separate 15-year deal covers 2,700 megawatts from its other PJM plants, regardless of fuel type. Google’s electricity demand rose 37 per cent and its carbon emissions 18 per cent last year, while New Jersey electricity prices have climbed 54 per cent over five years.
- Google and Constellation plan upgrades at six nuclear sites.
- The work is expected to add 890 megawatts within five years.
- A separate deal covers 2,700 megawatts from other plants.
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Artificial intelligence systems require enormous computing power, handled by large data centres that consume vast quantities of electricity. Tech companies are rapidly expanding their data centre operations to support AI systems, driving sharply increased electricity demand that is straining electrical grids.
The eastern regions of the grid are particularly under pressure, with concerns about whether there is sufficient reliable electricity supply and why bills are rising. Nuclear power plants can generate large amounts of electricity without producing carbon emissions, making them attractive to technology companies seeking to power energy-intensive facilities.
Google has signed a long-term deal with Constellation, which operates nuclear power plants, to help fund major upgrades at six existing facilities. The upgrades will modernise 11 reactors across Illinois, Pennsylvania and New Jersey, aiming to add roughly 890 megawatts of additional electricity generation over the next five years.
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The strongest fair case each way — we don't pick a winner.
The case for
Nuclear power provides reliable, low-carbon electricity that can genuinely replace fossil fuels and meet growing data centre demand. This investment upgrades existing infrastructure, preserving proven carbon-free capacity that would otherwise close, whilst addressing grid stability concerns in a critical region. It represents pragmatic climate action aligned with decarbonisation goals.
The case against
The deal normalises corporate energy consumption growth rather than addressing it, insulating major tech companies from market pressures that would incentivise efficiency and reducing demand. The same investment in demand reduction, efficiency improvements, or renewable acceleration could achieve greater emissions reductions overall and ensure corporations share responsibility for their environmental footprint.
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Originally published by The Verge as “Google’s power-hungry data centers crave nuclear energy”.