Amazon Secures 20 Years of Nuclear Power From Constellation

Key Points:

• Goldman analyst Carly Davenport views Amazon's 20-year nuclear power deal with Constellation Energy as broadly positive, supporting the "Powering Up America" and nuclear energy themes amid Big Tech's search for clean, stable power for data centers.
• The deal involves 690 megawatts from Maryland's Calvert Cliffs nuclear plant, enabling Amazon to power data centers across the 13-state PJM Interconnection grid and unlocking over $3 billion in infrastructure upgrades at the facility.
• The agreement provides long-term revenue certainty for Constellation, facilitating a 20-year license extension for Calvert Cliffs and potential development of new clean energy projects on-site.
• Financially, the deal could yield significant free cash flow upside for Constellation, with estimates ranging from $86 million to $224 million based on pricing sensitivities, despite the challenging regulatory environment in the PJM market.
• Constellation's CEO highlighted the agreement as an example of private investment strengthening critical energy infrastructure, with the added nuclear capacity helping to address grid reliability issues in Maryland amid growing data center demand.