Meta Strikes AI Nuclear Power DealSending Constellation Energy Stock Soaring

Published: Tuesday, June 3, 2025 at 1:44 pm

Meta's AI Ambitions Fuel Nuclear Power Boom, Sending Constellation Energy Stock Soaring

Meta, the parent company of Facebook, is making a significant bet on nuclear energy to power its energy-intensive artificial intelligence (AI) initiatives. In a groundbreaking deal, Meta has agreed to purchase all the power generated by Constellation Energy's nuclear plant in Clinton, Illinois, for a 20-year period starting in 2027. This marks the first time a company has committed to buying the entire output of a single nuclear plant.

The announcement sent Constellation Energy's stock soaring, with shares jumping over 5% to a five-month high, pushing the company's market value past $100 billion. While the financial terms of the deal remain undisclosed, Constellation CEO Joseph Dominguez revealed the agreement represents "billions of dollars of capital" committed to operating the plant for two decades.

This deal underscores the growing importance of nuclear energy in the age of AI. The demand for power to fuel generative AI is immense, and nuclear energy offers a reliable, carbon-free source. This shift has already benefited Constellation Energy, which has seen its stock return over 230% since late 2022, outpacing the S&P 500.

The agreement also highlights the broader trend of nuclear energy's resurgence. Experts like Yardeni Research founder Ed Yardeni note that nuclear is experiencing a "rebirth," driven by AI's energy needs and the need for stable power sources to complement renewable energy like solar and wind. This trend is further supported by initiatives like President Donald Trump's executive order aiming to significantly increase U.S. nuclear energy capacity by 2050.

Meta's investment reflects the massive capital expenditures required to build out its AI infrastructure. The company expects to spend between $64 billion and $72 billion on capital expenditures this year alone. This deal with Constellation Energy is a clear signal of Meta's commitment to its AI ambitions and the crucial role nuclear power will play in achieving them.

Keywords: Meta, Facebook, AI, Artificial Intelligence, Nuclear Energy, Constellation Energy, Clinton Illinois, Power Purchase Agreement, Renewable Energy, Stock Market, Energy, Generative AI, Carbon-Free Energy, Donald Trump, S&P 500, Energy Demand, Power Plant, Investment, Stock, Shares, Market Value

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