Constellation Energy (CEG) stock surged more than 12% in premarket trading following news that it struck a 20-year power purchase agreement (PPA) with Meta (META). Meta stock was roughly unchanged.
Starting in June 2027, Meta will buy 1,121 megawatts of energy from Constellation’s Clinton nuclear facility in Illinois, powering its AI ambitions while supporting its clean energy goals, a release stated.
The Clinton Clean Energy Center was nearly retired in 2017 after financial losses, but a state clean energy program kept the facility operational until mid-2027. Meta’s PPA now ensures that the plant will continue to run once that program ends, essentially replacing that financial support.
Though Constellation and Meta did not announce a price tag for the deal, they noted it “backs billions in plant investments,” marking one of the largest nuclear energy agreements so far.
Meta has signed a number of power purchase agreements in recent months — along with the other hyperscalers like Google (GOOG), Amazon (AMZN), Microsoft (MSFT) — as Big Tech races to ensure it can power the artificial intelligence boom.