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Constellation Energy (CEG) surged as much as 15% in earlier trading today following the announcement of a 20-year power purchase agreement with Meta Platforms (META) to supply nuclear energy from its Clinton Clean Energy facility in Illinois. The stock has since pared most of those gains, though the deal has sparked significant enthusiasm across the nuclear energy sector, driving notable gains in related stocks such as: NANO Nuclear Energy (NNE), Uranium Energy Corp (UEC), Energy Fuels (UUUU), and Centrus Energy (LEU).

This rally underscores the sector’s growing relevance as tech giants seek reliable, carbon-free energy sources, though CEG’s pullback suggests some investors may be reassessing the deal’s immediate financial impact or taking profits after the stock soared by 40% since the end of April.

• META, alongside other tech leaders like Microsoft (MSFT), Google (GOOG), and Amazon (AMZN), is increasingly turning to nuclear power to meet the immense energy demands of AI data centers, which require consistent, high-capacity, and low-carbon energy sources. Recent examples include CEG’s September 2024 agreement to restart Three Mile Island and supply power to MSFT for 20 years, GOOG’s pledge to fund a fleet of new nuclear sites in collaboration with Kairos Power, and AMZN leading a $500 mln investment in small modular reactors (SMRs) alongside its acquisition of a nuclear-powered data center campus in March 2024.
• The political and regulatory landscape has also turned more favorable, with President Trump’s executive orders in May 2025 aimed at accelerating nuclear reactor approvals and strengthening domestic uranium supply chains, targeting a quadrupling of U.S. nuclear capacity by 2050. These developments, coupled with preserved tax credits for nuclear energy, enhance the sector’s growth prospects, particularly for companies like CEG positioned to capitalize on long-term contracts with tech giants.
• The 20-year agreement with META commits CEG to supplying 1,121 megawatts (MW) of emissions-free nuclear energy from the Clinton Clean Energy Center, representing the plant’s entire output, starting in June 2027. The agreement ensures the plant’s operation beyond its scheduled 2027 closure, replacing Illinois’ expiring zero-emission credit (ZEC) program, and CGI and enabling a 30 MW capacity expansion.
• While financial terms were not disclosed, the deal is expected to stabilize CEG’s revenue by securing a long-term buyer for the plant’s output, preserving 1,100 jobs and $13.5 mln in annual tax revenue. The contract enhances CEG’s financial outlook by ensuring consistent cash flows and supporting relicensing efforts, potentially boosting long-term profitability, though near-term impacts may be muted until 2027.

CEG is strategically positioned to meet the surging energy demands of AI-driven data centers, with the 20-year META contract exemplifying how tech giants are increasingly relying on nuclear power for reliable, carbon-free energy. This deal, alongside similar agreements with MSFT and others, underscores CEG’s leadership in the nuclear sector and its potential for sustained growth as AI and clean energy needs converge.