Constellation Energy Corp

Constellation Energy Corporation announced a 20-year power purchase agreement with Amazon covering 690 megawatts of power, including approximately 190 megawatts of new nuclear capacity at the Calvert Cliffs Clean Energy Center. The agreement is expected to enable more than $3 billion in Maryland infrastructure investments, including improvements across the plant's entire 1,790-megawatt generating capacity, with the capacity expansion expected to be completed between 2030 and 2032. The deal will provide Constellation with revenue certainty to support the relicensing of Calvert Cliffs for another 20 years. In the second quarter of 2026, the company signed approximately 920 megawatts of long-term power purchase agreements with diverse, investment-grade customers, with an average duration of 18.5 years and expected full ramp-up by 2032, and also signed a 176-megawatt agreement with Walmart including 30 megawatts of expanded capacity at the Dresden Clean Energy Center. Constellation invested $2.52 billion in the first six months of 2026 and expects capital expenditures of approximately $5.7 billion in 2026 and $4.7 billion in 2027.

Amazon.com announced a multi-year agreement worth over US$1.00 billion with Synopsys to bolster its custom chip design for AI and cloud computing, and separately signed a 20-year nuclear power deal with Constellation to secure 690 megawatts of electricity from Maryland's Calvert Cliffs plant. The two moves pair in-house silicon development with long-term, low-carbon power access, reinforcing the infrastructure backbone behind Amazon's expanding AI and cloud services. The chip deal and the nuclear agreement look material for AWS's near-term capacity buildout, though the immediate stock catalyst still centers on how quickly those AI investments flow through to earnings against the risk that AWS capital intensity and competition compress segment margins. The developments come as Amazon commits over US$220 billion of annual spending into AI and cloud infrastructure, alongside a proposed US$309.5 million settlement of the Amazon Return Policy class action. Amazon's narrative projects $1152.4 billion revenue and $158.3 billion earnings by 2029, with a $327.00 fair value implying 32% upside to its current price.

Microsoft plans to expand its global data center capacity to more than 38 gigawatts by 2032, more than tripling its current roughly 12-gigawatt footprint, according to Bloomberg News reporting cited by Reuters and attributed to people familiar with the plans. Only about 2 gigawatts of Microsoft's current capacity is dedicated to AI-specific chips, a share the company expects to grow to roughly one-third of the much larger 38-gigawatt total by 2032, though Microsoft has not confirmed the target in any public filing or statement. The reported roadmap rests on strong cloud demand: Azure and other cloud services revenue rose 43% year over year in fiscal Q4, Microsoft Cloud revenue reached $59.3 billion for the quarter and $214.4 billion for fiscal 2026, and commercial remaining performance obligations climbed 84% year over year to $678 billion, with roughly 30% expected to be recognized as revenue over the next 12 months. Funding the buildout will be costly, with Microsoft expecting more than $50 billion of capital expenditures in fiscal Q1 2027 and about $175 billion during calendar 2026 under its broader capex definition, after roughly $145 billion in fiscal 2026. Power and political hurdles could slow the plan, as Texas temporarily halted approvals for new data center grid connections and New York imposed a moratorium on large new data centers, even as Microsoft signed a 20-year agreement with Constellation Energy tied to the restart of the 835-megawatt Three Mile Island Unit 1.

Constellation Energy Corporation announced on September 10, 2026, an agreement to acquire 100% of RISEC Holdings, LLC, owner of the Rhode Island State Energy Center, from Shell Energy North America, a subsidiary of Shell plc, for $715 million. The 609-megawatt natural gas-fired combined-cycle facility sells power into the ISO New England wholesale market, and net of expected first-year tax benefits the effective purchase price is approximately $580 million. Constellation said the acquisition should be immediately accretive to operating earnings while meeting its 10% unlevered return threshold and preserving its $5 billion share buyback program. For Shell, the disposal is part of portfolio high-grading, freeing cash to support capital returns, structural buybacks, and higher-margin investments. Constellation gains dependable regional capacity alongside its nuclear fleet, though it takes on added debt and merchant gas exposure to commodity and power price swings.

The International Energy Agency projects that electricity demand from AI data centers will more than double between 2024 and 2030, rising from 415 terawatt-hours to 945 terawatt-hours, with demand reaching 1,200 terawatt-hours by 2035, nearly triple the 2024 figure. The IEA noted that AI electricity demand in 2030 will exceed Japan's current power use, and data center electricity use has been growing at 12% per year since 2017, more than four times the overall rate of consumption growth. Among the companies positioned to benefit, Bloom Energy entered 2026 with a product backlog of $6 billion, up 140% over 2025's starting backlog, plus a service backlog of $14 billion. Constellation Energy, one of the largest operators of nuclear power plants in the United States, is already working with AI companies including Meta and Microsoft, while Cameco expects nuclear fuel demand to outstrip supply by the mid-2030s. NextEra Energy is doubling down on AI and data centers with its pending acquisition of Dominion Energy, which holds a monopoly in one of the world's largest data center markets.

Citi says growing political opposition to artificial intelligence infrastructure ahead of the November U.S. midterm elections has not materially weakened the data center construction pipeline. Data center development has become a bipartisan flashpoint, with local governments introducing moratoriums and at least 15 state legislatures proposing tighter regulatory restrictions, yet spending remains strong as AI infrastructure demand continues to support development. The impact has been concentrated among speculative and early-stage projects, which are increasingly delayed or cancelled during local approval processes, while late-stage developments that have already secured sites and grid connections continue to move ahead. Hyperscalers are seeking workarounds to power constraints and local restrictions, with Amazon pursuing direct investment in nuclear development with Dominion Energy and Meta securing a major nuclear power purchase agreement with Constellation Energy. Citi does not expect another market shock comparable to the emergence of DeepSeek, arguing investors have already adjusted to the prospect of highly efficient Chinese models, though it flags a potentially greater risk from governments restricting models deemed too dangerous, which could abruptly create excess computing capacity.

Nvidia, Google and Emerald AI have launched the AI Energy Management Alliance, or AEMA, a coalition that dynamically manages the electricity use of data centers in response to grid conditions. Emerald AI founder and CEO Varun Sivaram said the alliance's founding members are joined by a cohort of 20 launch partners, including the AI lab Anthropic, the semiconductor firm Analog Devices, and the energy companies AES, NRG, Constellation, RWE and National Grid. Sivaram said Emerald AI, which was founded under two years ago, is building with Nvidia and Digital Realty the world's first from-the-ground-up power-flexible AI data center, a 100 megawatt facility in Manassas, Virginia, that comes online later this year. He said Google, one of the founding members, has already done a gigawatt of demand response for its data centers, while Emerald and Nvidia have completed six demonstrations around the world, in London, Phoenix and Virginia. Sivaram said the alliance is talking to the FERC commissioners, state regulators and the administration about a grand bargain in which flexible AI data centers act as good citizens to grids and communities in return for faster and larger connections to the power grid.

Constellation Energy Corporation is extending the life of its nuclear fleet and expanding its clean-power generation capacity as it positions itself to capture rising U.S. electricity demand, particularly from data centers. The company's 55-gigawatt diversified generation portfolio supplies about 10% of U.S. clean energy, and the Calpine acquisition further expanded its capacity. Constellation is pursuing license renewal applications for Ginna and Nine Mile Point Unit 1 targeting operations through 2049, plans to restart the Crane Clean Energy Center in 2027 subject to regulatory approvals, and sees opportunities to add about 1,000 megawatts of uprated capacity through technology upgrades. Constellation expects base earnings per share to grow more than 20% through 2029, followed by growth exceeding 10% over long-term rolling three-year periods. The Zacks Consensus Estimate points to 2026 and 2027 EPS increases of 29.29% and 8.09% year over year, respectively, while the company's trailing-12-month return on equity of 14.89% sits well ahead of the industry average of 7.14%.

Shell plc announced on September 10 that it had agreed to sell its interest in RISEC Holdings to Constellation Energy Corporation for $715 million. RISEC owns the Rhode Island State Energy Center, a 609 MW natural gas electric generation facility serving the New England power market. At the same time, Shell will acquire 100% equity in Hunlock Creek Generating, which owns 169 MW of natural gas-fired generation capacity in Pennsylvania. Both transactions are expected to close in the first quarter of 2027, subject to regulatory approvals. Constellation said the RISEC acquisition is expected to be immediately accretive to its operating earnings and to generate returns above its 10% unlevered return threshold, and that the deal will not impact its plans to execute $5 billion in authorized share repurchases by the end of 2027.

Shell plc is reshaping its U.S. power portfolio through two natural gas-fired generation transactions, with its subsidiary Shell Energy North America (U.S.), L.P. agreeing to acquire 100% equity interest in Hunlock Creek Generating LLC while selling its interests in RISEC Holdings, LLC to Constellation Energy Generation, LLC for $715 million. The Hunlock acquisition adds 169 megawatts of natural gas-fired capacity in Pennsylvania, comprising a 125-MW combined-cycle plant and a 44-MW simple-cycle peaking plant, and strengthens SENA's presence in the PJM Interconnection market, which spans 13 states and the District of Columbia and serves more than 65 million people. The RISEC sale covers a 609-MW, two-unit combined-cycle gas turbine plant serving the New England market, where SENA has held an energy conversion agreement for the plant's full output since 2019; that agreement terminates upon closing. Both transactions are subject to regulatory approvals and are expected to close in the first quarter of 2027, with Shell expecting the Hunlock acquisition to generate returns above the investment requirements set for its power business at its 2025 Capital Markets Day and the RISEC sale to produce a significant gain. Andrew Smith, Shell's president of Trading & Supply, said the moves reflect selectively investing in assets that strengthen market position while remaining prepared to realize value when conditions are favorable.

The U.S. Department of Energy has awarded a $1.9 billion loan to NextEra Energy to refurbish the Duane Arnold Energy Center in Iowa, a nuclear plant that Google plans to use to power its data centers. This is the second such loan, following a $1 billion loan to Constellation Energy for the Three Mile Island restart. Deputy Secretary of Energy James Danly said the restart in 2029 will drive down electricity costs, though he did not explain how. NextEra CEO John Ketchum noted that only 50 megawatts will be set aside for the local power cooperative, which would cover 18% of Iowa's demand growth since 2021. Google is reportedly planning up to six data centers near the plant, which has been idle since 2020. The refurbishment will add 14 megawatts, bringing total capacity to 615 megawatts.

Berkshire Hathaway's Greg Abel has flagged a growing nationwide resistance to data center construction, as Pennsylvania Governor Josh Shapiro signed an executive order making community support a permit prerequisite for new sites. Abel told CNBC there is "a lot more pushback" on data center construction, while White House AI adviser David Sacks amplified a political messaging script framing data centers as "life preservers" for "drowning American towns." The pushback comes as investors underwrite roughly $1 trillion in AI capital expenditure this year, with forecasts of $1.4 trillion next year. NVIDIA reported $96.22 billion in quarterly revenue and expects fiscal 2028 growth of approximately 70%, while Constellation Energy signed 920 megawatts of long-term nuclear power purchase agreements. Berkshire's operating earnings rose to $12.98 billion last quarter, and the company deployed roughly $23.5 billion into equities, including a $10 billion Alphabet stake. BRK-B is up just 0.52% year to date, compared to NVDA's 20.47% and VRT's 58.52% gains, a gap that prices in a frictionless buildout that zoning boards and rate-shock headlines could unwind.

As the third quarter of 2026 draws to a close, the nuclear energy industry is seeing tangible progress with retired plants restarting, small modular reactors under construction, and billions flowing into the fuel supply chain. The U.S. Department of Energy aims to add 2.5 gigawatts of nuclear capacity by 2027 and 5 gigawatts by 2029 through uprates and restarts, with Holtec's Palisades plant in Michigan and Constellation Energy's Crane Clean Energy Center in Pennsylvania leading the restart efforts, backed by $1.52 billion and $1 billion federal loans respectively. Ontario Power Generation has begun construction on the first of four GE Vernova Hitachi small modular reactors at Darlington, Canada, with the first 300-megawatt unit expected to cost about $5.5 billion and all four projected at $15 billion. Advanced reactor developers like Oklo, TerraPower, NuScale, and X-energy are moving beyond design stages, with X-energy's potential pipeline including 144 reactors representing about 11.5 gigawatts. AI is accelerating development through initiatives like Project Prometheus, and the DOE has awarded $2.7 billion in orders to expand domestic uranium enrichment, including HALEU production. While the nuclear renaissance is real, commercialization remains key, with established players like Constellation and BWX Technologies offering cash flow, while newer companies like Oklo, NuScale, and X-energy carry higher risk but greater upside.

Constellation Energy reported second-quarter 2026 operating revenues rose 23% year over year to $7.50 billion, driven partly by the Calpine acquisition, higher capacity revenues and stronger commercial performance. Adjusted operating earnings increased 33.5% to $2.55 per share. The company signed nearly 920 megawatts of long-term nuclear power purchase agreements with an average duration of 18.5 years, and expects nearly 30% of its baseload clean-generation megawatt-hours to be covered by long-term agreements. Constellation projects 20%+ base-adjusted operating earnings growth through 2029 and a 10%+ long-term rolling three-year base EPS growth target. It also filed license renewal applications for Ginna and Nine Mile Point Unit 1 targeting operations through 2049, and is advancing the Crane Clean Energy Center restart following approvals from the Federal Energy Regulatory Commission and the Nuclear Regulatory Commission.

Constellation Energy raised its 2026 adjusted EPS guidance to a range of $11.50 to $12.50, up from $11.00 to $12.00, while Talen Energy cleared more than 10 GW in the 2028/2029 PJM Base Residual Auction worth $2.025 billion to $2.225 billion. Uranium Energy carries zero debt and $794 million in liquid assets while operating the largest new greenfield ISR uranium project in over a decade. Constellation's Q2 adjusted EPS of $2.55 beat estimates by 9.52% on revenue of $7.504 billion, up 23% year over year, and management reiterated base EPS growth of 20% or more through 2029. Talen reported a GAAP loss of $2.00 per share due to $211 million in unrealized commodity derivative losses, but adjusted EBITDA rose to $374 million from $90 million a year ago. Uranium Energy produced 200,000 pounds at a total cost of $54.61 per pound in fiscal Q3 with no revenue recognized as management held inventory.

Constellation Energy and GE Vernova are positioned to benefit from surging electricity demand from AI data centers. Constellation, which operates the largest nuclear power fleet in the U.S., signed a 20-year power purchase agreement with Microsoft to restart the Three Mile Island nuclear facility in Pennsylvania, now called the Crane Clean Energy Center. GE Vernova, which supplies power generation and distribution hardware, generated $5 billion from data center power equipment in the first half of this year, more than double its total for all of last year, and holds a $176 billion backlog. Constellation Energy shares are down over 25% year to date through August 20, while GE Vernova shares are up over 42% this year and 194% since the start of 2025.

Constellation Energy raised its full-year adjusted operating earnings guidance to $11.50 to $12.50 per share and signed 920 megawatts of new long-term power purchase agreements in the second quarter. The contracts, averaging 18.5 years in length, include a 176-megawatt deal with Walmart split into two 15-year contracts starting in 2029 and 2030, and will fund a 30-megawatt expansion at the Dresden Clean Energy Center. The company also cleared key regulatory hurdles for the restart of its Crane Clean Energy Center, the former Three Mile Island Unit 1, with FERC granting a grid connection waiver and the NRC approving a fuel license amendment, keeping the 835-megawatt unit on track to restart in 2027. However, GAAP earnings per share fell to $1.42 from $2.67 a year earlier, partly due to a higher share count after the Calpine acquisition, and nuclear output slipped to 44,160 gigawatt-hours from 45,170 with the capacity factor dipping to 93.0% from 94.8%. Constellation also agreed to sell the 606-megawatt Brazos Valley Energy Center to LS Power for $860 million, pending Department of Justice approval.

SpaceX's latest earnings call triggered sharp moves in telecom and energy stocks after executives outlined plans to build a terrestrial wireless network and massive power infrastructure. COO Gwynne Shotwell said Starlink would target customers of AT&T, Verizon, and T-Mobile, which together generate roughly $600 billion a year, causing shares of those carriers to drop. Deutsche Telekom CEO Timotheus Hottges acknowledged the market reaction, calling it overblown but saying the company takes SpaceX's ambitions seriously. Separately, Elon Musk's comments about building 20 gigawatts of power lifted natural gas equipment suppliers GE Vernova and Baker Hughes, as well as power providers Constellation Energy, NextEra Energy, Vistra, and EQT Corporation. The call also boosted Nvidia after Musk said SpaceX would build exclusively on its Vera Rubin architecture, and highlighted Echostar's 261.8 million share stake in SpaceX as a direct beneficiary.

The explosive growth in artificial intelligence is creating a historic boom in energy demand, with modern AI hardware requiring up to 100 kilowatts per server rack, and three utility stocks are positioned as hidden winners. Constellation Energy, the largest commercial operator of nuclear power in the U.S. with 22 gigawatts of capacity, has entered 20-year power purchase agreements with Microsoft and Meta Platforms, including restarting a unit at Three Mile Island, and recently diversified through its $26.6 billion acquisition of Calpine. Vistra Corporation, with about 44,000 megawatts of total capacity, has a 20-year power purchase agreement with Meta for 2,600 megawatts from its nuclear plants and is the preferred power provider for Helix Investments, a new company formed with KKR, the Kuwait Investment Authority, and Nvidia with over $10 billion in capital commitments. NextEra Energy, which operates the largest regulated utility in the U.S. and the world's largest producer of wind and solar power, has a record 35.1 gigawatt renewable and storage pipeline and is partnering on a $100 billion AI data center campus in Kentucky, where it will build 2 gigawatts of natural-gas generation and up to 2.6 gigawatts of battery storage.

Constellation Energy reported second quarter 2026 results that beat expectations, with sales of US$7,504 million and net income of US$513 million, and also raised its full-year earnings outlook. Despite an 8.92% share price gain over the past month, the stock is still down 28.71% year to date, though its three-year total shareholder return stands at 152.05%. The most popular narrative among investors pegs Constellation Energy's fair value at $352.91, well above the last close of $261.10, implying the stock is 26% undervalued. This thesis is driven by growing demand for carbon-free, reliable power from large-scale customers such as data centers and corporates, which is expected to generate higher-margin, longer-term contracts and significant revenue and earnings growth. However, a contrasting view notes that Constellation Energy trades at a price-to-earnings ratio of 24.6 times, above the US Electric Utilities industry average of 21.2 times and above its own estimated fair ratio of 29.8 times, raising questions about whether expectations are already elevated.

Constellation Energy raised its 2026 full-year adjusted operating earnings guidance to a range of $11.50 to $12.50 per share. The company also reported adjusted earnings of $2.55 per share for the latest quarter, up from $1.91 a year ago, while adjusted net income climbed to $920 million from $599 million. Constellation locked in another 920 megawatts of long-term power purchase agreements with 15- to 20-year terms and deliveries between 2029 and 2032, and regulators cleared a key hurdle for the planned 2027 restart of the Crane Clean Energy Center. The company agreed to sell its 606-megawatt Brazos Valley gas plant for $860 million, completing divestiture commitments tied to the Calpine acquisition pending regulatory approval. GAAP earnings fell to $1.42 per share from $2.67 due to one-off factors, but the underlying operating picture continued to improve.

SpaceX is targeting as much as 20 gigawatts of power, cooling, and electrical infrastructure online by the end of next year, a demand level that Melius Research calls a 'clear positive' for industrial equipment suppliers. Managing director James West highlighted that this massive requirement, nearly half of the 53 gigawatts of new US generation capacity added in 2025, will benefit companies already riding the AI infrastructure boom. Among the beneficiaries are natural gas power equipment makers GE Vernova and Baker Hughes, as well as power providers Constellation Energy, NextEra Energy, Vistra, and EQT Corporation. GE Vernova reported a 36% backlog increase to $176 billion in its second quarter, with power segment orders up 134% year on year, while Baker Hughes saw its industrial energy and technology orders double to over $7 billion. Elon Musk stated that even if forecasts fall short, SpaceX should still have around 15 gigawatts of capacity at the power plant level by the end of 2027.

Morgan Stanley projects a 38-gigawatt electricity gap for U.S. data centers, leaving up to an 11-gigawatt deficit through 2028 even after all practical solutions are deployed. The investment bank estimates that natural gas turbines could provide 15 to 20 gigawatts of that capacity, making GE Vernova the clearest beneficiary given its dominance in large-frame gas turbines and a multiyear data center order backlog. Other potential solutions include fuel cells, co-located nuclear plants, and repurposed Bitcoin mining sites, but Morgan Stanley's base case still shows a supply shortfall. Companies such as Bloom Energy, Constellation Energy, Vistra, Talen Energy, Core Scientific, IREN, and Cipher Mining also stand to benefit from the power crunch. The analysis suggests the AI industry's biggest obstacle has shifted from semiconductor supply to electricity supply, with owners of existing power assets poised to capture significant value.

The utilities sector declined 0.25% in July, outperforming the S&P 500's 0.61% drop. Constellation Energy led all gainers with a 13.35% advance, boosted by its venture arm's first investment in a U.S. nuclear developer, Blue Energy. PG&E Corporation rose 7.42% after reaffirming 2026 core EPS guidance of $1.64 to $1.66 and targeting a 20% dividend payout starting in 2028. On the downside, Alliant Energy fell 6.57% following an analyst downgrade citing an 8% premium to fair value, while DTE Energy dropped 6.18% ahead of its earnings report.

President Donald Trump signed an executive order in May 2025 aiming to expand U.S. nuclear power capacity from 100 gigawatts to 400 gigawatts by 2050. The order seeks to accelerate regulatory and financing support for both established nuclear operators and emerging technologies like small modular reactors. Constellation Energy has already received a $1 billion government loan tied to its nuclear ambitions, while NuScale Power recently won approval for a higher-capacity reactor design and is working with a Romanian utility and the Tennessee Valley Authority on potential first deployments. Cameco and Brookfield Renewable offer indirect exposure through uranium supply and shared ownership of Westinghouse, respectively. Power demand is projected to grow 60% over the next 20 years, up from 10% in the prior two decades, intensifying the push for reliable, carbon-free baseload generation.

Constellation Energy shares jumped almost 5% on Wednesday as part of a broader rally in nuclear stocks. The U.S. government signed a 30-year nuclear cooperation deal with Saudi Arabia, and Bloomberg reported a new $200 million program to support domestic power plant construction aimed at meeting AI data center energy needs. While Constellation operates America's largest fleet of full-scale nuclear plants and was not named as a direct participant in either effort, investors see the company benefiting from the administration's strong push to expand nuclear power generation.

Constellation Energy is leveraging a diversified 55-gigawatt generation fleet to support long-term growth and meet rising clean electricity demand. Following its acquisition of Calpine, the fleet spans nuclear, natural gas, oil, geothermal, hydro, wind, and solar, producing nearly 10% of the nation's clean electricity. The company plans nearly 10 gigawatts of new capacity, will restart the 835-megawatt Crane plant to serve Microsoft's AI-driven demand, and has submitted nearly 5,000 megawatts of new nuclear uprates, natural gas, and battery storage projects into PJM's interconnection queue. Capital expenditures are set at $5.7 billion in 2026 and $4.7 billion in 2027 to upgrade plants and extend asset life. Constellation Energy's trailing-12-month return on equity stands at 16.81%, well above the industry average of 7.15%.

The Motley Fool projects that a $5,000 investment in Constellation Energy could grow to roughly $11,500 by 2036, while the same amount in Cameco could reach about $7,400 under a base-case scenario. Constellation Energy, the largest U.S. nuclear operator, expects base earnings per share to grow at an annualized rate of more than 20% from 2026 through 2029, with growth of more than 10% in each of the three-year periods after 2029. Using the midpoint of its 2026 base earnings guidance of $6.70 per share, those targets would lift base EPS to about $22.56 by 2036, and applying a conservative 18 times earnings multiple yields a share price near $580. Cameco, a major uranium producer with a 49% stake in Westinghouse, is seen growing EPS from an estimated $1.66 in 2026 to about $5.16 by 2036 under a 12% annual growth assumption, and at 25 times earnings the stock could trade near $129. The analysis notes risks including Constellation's integration of Calpine and nuclear restart challenges, as well as Cameco's production disruptions and potential valuation compression.

Constellation Energy is the better buy over Bloom Energy for 2026, according to a Motley Fool analysis, due to its established nuclear fleet and long-term data center contracts. Constellation, now the largest private power producer after acquiring Calpine, reported fiscal 2025 revenue of roughly $25.5 billion and net income of nearly $2.3 billion, with a forward P/E of 21.5x. Bloom Energy, a fuel cell maker with a $25 billion financing framework from Brookfield Asset Management, posted revenue of about $2.0 billion but a net loss of nearly $88.4 million, trading at a forward P/E of 96.5x. While both companies stand to benefit from surging electricity needs for AI data centers, Constellation's predictable cash flow and lower valuation make it the preferred choice over Bloom's higher-risk, high-growth profile.

New York has become the first U.S. state to halt construction of large data centers, with Governor Kathy Hochul issuing an executive order imposing a one-year moratorium on environmental permits for new facilities consuming 50 megawatts or more. The move validates recent warnings from BlackRock CEO Larry Fink about strained power infrastructure, as he cautioned that such moratoriums are not the answer and urged faster delivery of power. Fink noted that data centers currently cost $50 to $60 billion for a one-gigawatt facility, and he contrasted U.S. delays with China building 100 gigawatts of nuclear and close to 100 gigawatts of solar to prepare for the AI revolution. The moratorium places utility stocks like Constellation Energy, Vistra, and NextEra Energy in focus, as energy producers with capacity to deliver consistent power without hiking consumer prices are seen as essential partners for tech companies.

Constellation Energy, Entergy, and NextEra Energy are identified as utility stocks poised to benefit from rising electricity demand driven by AI data centers. Constellation Energy, which owns 15 nuclear power plants, has secured long-term power deals with hyperscalers like Meta Platforms and is expected to see earnings grow nearly 25% this year and 16% in 2027. Entergy, the Gulf region utility supplying power to Meta's $50 billion Louisiana data center, plans to raise up to $4.4 billion in equity through 2029 and forecasts nearly 40% earnings growth by 2029. NextEra Energy is increasing its exposure through a planned merger with Dominion Energy, the utility for northern Virginia's data center alley, with management projecting at least 9% annual adjusted earnings growth through 2032.

Constellation Energy has made an equity investment in Blue Energy, a developer of prefabricated nuclear power plants, through its venture capital arm. The investment amount was not disclosed. This marks Constellation Technology Ventures' first investment in a U.S. nuclear developer advancing small modular reactors. Blue Energy earlier this year raised $380 million and partnered with GE Vernova to develop a multi-gigawatt gas-to-nuclear project using BWRX-300 small modular reactors.

The global climate technology market is projected to grow from USD 48.46 billion in 2025 to USD 312.74 billion by 2035, driven by clean energy and carbon removal advancements. Investments surpassed USD 1.8 trillion in 2024, favoring renewables over fossil fuels and accelerating technologies like carbon capture and AI-driven climate solutions. Policy frameworks such as the U.S. Inflation Reduction Act and Europe's Green Deal, along with cost reductions in solar, wind, and battery technologies, are speeding the transition to sustainable energy infrastructure. Innovations in energy storage and green hydrogen adoption highlight the sector's shift from experimental phases to large-scale implementation.

U.S. utility unpaid bills have surged from roughly $15 billion in 2022 to $25 billion in 2025, while electricity shutoffs rise alongside soaring demand from artificial intelligence data centers. In Virginia, a key data center market, electricity prices near data centers jumped over 260% over five years, according to Bloomberg. NextEra Energy is acquiring Dominion Energy, betting on AI demand to boost earnings, but the deal hinges on regulatory approval for rate increases. Companies like Constellation Energy, Brookfield Renewable, and Bloom Energy operate outside the regulated utility framework, offering alternative ways to invest in AI power demand without direct exposure to rate-hike pushback.

Constellation Energy is adding nearly 10 gigawatts of new power capacity and restarting the 835-megawatt Crane Clean Energy Center to serve Microsoft’s AI-driven electricity demand, while also expanding its natural gas and battery storage business. The company has entered a 20-year power purchase agreement with Meta to supply 1.1 gigawatts from the Clinton Clean Energy Center in Illinois. Following the Calpine acquisition, Constellation owns about 55 gigawatts of capacity across nuclear, natural gas, geothermal, hydro, wind and solar assets. The company projects 2026 adjusted earnings per share of $11 to $12 and more than 20% annual base EPS growth through 2029, supported by long-term data center contracts, higher natural gas plant utilization and nuclear production tax credits.

Constellation Energy has signed a nuclear power deal with Walmart, supporting the retailer's clean energy goals, following a similar 20-year contract with Meta. The company's price-to-earnings ratio has fallen to 21 times, down from nearly 50 times during the peak of nuclear power enthusiasm, making the stock more reasonably valued. Constellation Energy, one of the largest nuclear power providers in the United States, sells power at market rates outside the regulated framework, allowing it to ink long-term contracts directly with customers. The company also expanded into natural gas power through its acquisition of Calpine, positioning it to benefit from broader electricity demand growth, which is expected to increase by 60% between 2025 and 2045.