Shares of Constellation Energy Corp (CEG) and other nuclear power companies soared on Monday, propelled by a flurry of deals and announcements from major tech giants seeking to secure nuclear energy sources to power their rapidly growing data centers and artificial intelligence operations.
The surge in nuclear power stocks was ignited by tech heavyweights like Microsoft, Google, and Amazon, who have all recently struck deals or announced plans to invest in next-generation nuclear reactors known as small modular reactors (SMRs). These advanced reactors are seen as a more affordable and scalable solution to meet the insatiable energy demands of data centers and AI systems.
Leading the charge is Constellation Energy, the largest nuclear power operator in the United States. The company recently signed a two-decade contract with Microsoft to provide nuclear power for the tech giant's data centers. As part of the deal, Constellation Energy will restart the Three Mile Island Unit 1 nuclear reactor in Pennsylvania, which had been idle since 2019.
Following suit, Amazon announced on Wednesday that it has signed three agreements to develop SMRs in partnership with companies like X-Energy and Dominion Energy. The e-commerce giant also invested $500 million in X-Energy as part of a funding round aimed at accelerating the development of SMR technology.
Google, too, has jumped on the nuclear bandwagon, revealing plans to construct seven SMRs from startup Kairos Power, with the goal of bringing the first reactor online by 2030 and the remaining by 2035.
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