The disclosure and our analysis
Evidence dates
Evidence: Constellation Energy and Google joint news release dated October 6, 2026; Constellation Energy and Amazon joint news release dated September 30, 2026.
What Google and Constellation disclosed
The 20-year power purchase agreement will fund new equipment and technology at 11 Constellation-owned nuclear units across six sites in Illinois, Pennsylvania and New Jersey. The companies say the work raises thermal and electrical efficiency and adds 890 MW of generating capacity that is "entirely new" to the PJM footprint. The first uprate is expected to be delivered by 2028. [Source 1]
Separately, the companies entered into a 15-year energy supply agreement for an additional 2,700 MW of Constellation's existing PJM fleet. The release calls this a financial structure that keeps those operating plants delivering energy and capacity to the PJM market. It does not describe the 2,700 MW as new capacity. [Source 1]
Constellation says the agreement represents more than $4.3 billion of new investment by Constellation, sustains about 4,400 existing jobs and creates about 7,200 construction jobs. [Source 1]
The release lists "demand flexibility integration" as a key element: Google incorporates operational load-shaping and demand-response capabilities to curtail non-critical power consumption during high-stress grid events. [Source 1]
The companies present the deal as a response to PJM's "Bring Your Own Power" proposal and say it aligns with the White House Ratepayer Protection Pledge. Google says it is bringing new capacity to PJM to support its growth without passing costs to residential customers. Those are the companies' characterizations. [Source 1]
Google and Constellation also agreed on a framework to evaluate new clean generation, storage and demand response projects, with near-term priority on PJM, and Constellation expanded a five-year technology agreement with Google Cloud and Gemini Enterprise. [Source 1]
The Amazon deal a week earlier
On September 30, 2026, Constellation and Amazon announced a 20-year agreement covering 690 MW of power from the Calvert Cliffs Clean Energy Center in Lusby, Maryland, including a 190 MW uprate expected to come online between 2030 and 2032. Constellation says the agreement enables more than $3 billion of investment at the 1,790 MW plant and supports relicensing it for another 20 years. The parties also signed a retail supply agreement for Amazon operations in the 13-state PJM market. All Calvert Cliffs output continues to flow to the PJM grid. [Source 2]
Buyer analysis
This is our analysis.
**This is generation, not data center capacity.** The 890 MW is new generating capacity at nuclear plants, measured at the plants. It is not critical IT load, utility service to any data center or leasable space. The 2,700 MW agreement covers existing generation and adds no new supply. Neither release names a Google data center served by the deal.
**Delivery is gradual.** Only the first uprate is dated, by 2028. The release does not give a schedule for the rest of the 890 MW. Amazon's 190 MW Calvert Cliffs uprate is dated 2030 to 2032. Buyers should not read either deal as near-term relief for PJM power constraints.
**Hyperscalers are paying for new supply up front.** Both deals fund generation that would not otherwise be built, in exchange for long-term offtake. That is becoming the price of large load growth in PJM. Colocation and wholesale buyers will not sign deals like these themselves, but their providers face the same pressure. Ask providers how their power for future phases is procured and whether any new capacity charges or supply commitments will be passed through.
**Demand flexibility is part of the bargain.** Google committed to curtail non-critical load during grid stress. Expect utilities and grid operators to ask more large users, including colocation tenants with flexible workloads, for similar terms. Check whether your contract allows a provider to curtail or shift load and on what notice.
