Google invests in modernization of 11 operating nuclear reactors in the United States

Google and Constellation Energy have signed a 20-year agreement to upgrade 11 existing reactors. It will increase their total capacity by 890 MW, which will be used to provide electricity to new data centers, reports The Wall Street Journal.

The modernization of nuclear reactors will provide additional electricity, the volume of which will be in total comparable to the production of a new large reactor. The deal is regarded as the largest project in history to increase the capacity of existing reactors. Constellation said it plans to invest more than $4.3 billion in the upgrade. The company added that financial support is provided directly by Google.

Constellation plans to complete the first phase of modernization in 2028. The modernization of all 11 reactors will end in 2032 or 2033. Google and Constellation have entered into an additional 15-year agreement to supply 2,700 megawatts of electricity to the U.S. Mid-Atlantic and Midwest markets. The companies also announced plans to develop new power generation and storage systems, demand management programs that allow redistribution or reduction of electricity consumption during grid congestion.

Following the announcement of the agreement, Constellation's shares rose 12 percent, prompting higher quotations among other power producers. Shares of Talen Energy rose 12 percent, Vistra 11 percent and NRG Energy 7 percent.

Vlad Nikiforov