TLDR
- Constellation Energy stock rose 9% in pre-market trading Tuesday after announcing a 20-year nuclear power deal with Google.
- Alphabet agreed to buy 890 megawatts of nuclear energy from 11 Constellation-owned units in Illinois, Pennsylvania, and New Jersey.
- The two companies also plan to use Google Cloud and Gemini to help run grid operations more efficiently.
- Constellation stock was still down 24% for the year before this news broke.
- This marks the fourth major Big Tech power deal for Constellation, following agreements with Microsoft, Meta, and Amazon.
Constellation Energy (CEG) stock climbed 9% to $292.25 in pre-market trading Tuesday. The jump came after Alphabet (GOOGL) agreed to a 20-year deal to buy nuclear power from the company.
Constellation Energy Corporation, CEG
Alphabet’s stock barely moved on the news, ticking up less than 1%. Google shares entered the day up about 11% for the year.
The deal covers 890 megawatts of nuclear energy. That power will come from 11 Constellation-owned nuclear units spread across Illinois, Pennsylvania, and New Jersey.
Alphabet needs the electricity to run its growing fleet of AI data centers. Big Tech companies have been racing to lock down power sources as their computing needs balloon.
A Pattern of Big Tech Power Deals
This isn’t Constellation’s first rodeo with a tech giant. The company struck a deal with Microsoft (MSFT) back in 2024 to restart the Three Mile Island nuclear site in Pennsylvania.
🇺🇸 Google is reportedly close to a $1 billion+ deal to buy nuclear power from Constellation Energy, and it could be announced as soon as this week.
It'd be Google's 3rd nuclear move in about a year, after teaming up to restart an Iowa nuclear plant and signing a deal last month… pic.twitter.com/bRdQqYhCyc
— Mario Nawfal (@MarioNawfal) October 6, 2026
It followed that up with a 20-year agreement to sell power to Meta Platforms (META) in 2025. Just last week, Constellation said it would supply Amazon (AMZN) with nuclear power from a Maryland plant.
So the Google deal makes four major tech partnerships in just two years. Constellation has quietly become the go-to nuclear supplier for the AI boom.
New capacity from the deal will also flow onto the PJM Interconnection grid. PJM is the largest grid operator in the country, covering all or part of 13 states plus Washington, D.C.
AI Meets the Power Grid
The agreement goes beyond just buying electricity. Constellation said it will deploy Google Cloud and Gemini Enterprise to build what the companies call an “AI for Energy” blueprint.
The goal is to use artificial intelligence to cut infrastructure costs and improve grid performance. The companies also say it should help ensure enough power gets generated to keep pace with rising demand.
It’s a neat bit of symmetry: AI needs electricity, and now electricity companies are leaning on AI to manage it. Whether that pays off in practice is another story.
Despite all these tech partnerships, Constellation’s stock hasn’t exactly been on fire. Shares were down 24% for the year through Monday’s close, before Tuesday’s pop.
Investors have grown impatient with how slowly profit growth has followed these headline-grabbing deals. Announcing partnerships is one thing. Turning them into earnings is another.
Tuesday’s rally suggests the market still reacts strongly to each new agreement, even if the bigger picture has been rough this year. The stock remains well below where it started 2026.
Constellation and Alphabet did not provide a financial figure for the 20-year agreement. Both companies framed the partnership as a long-term bet on nuclear power supporting AI growth.
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