Meta's 20-Year Nuclear Power Deal with Constellation Energy Fuels AI Ambitions and Boosts Nuclear Industry

Why Cameco Stock Is Moving Higher Today | The Motley Fool

Uranium giant Cameco saw a boost after a major deal was announced between Meta Platforms and Constellation Energy that led to nuclear stocks across the industry spiking. The parent company of Facebook and Instagram announced it has signed a 20-year agreement with Constellation to purchase roughly 1.1 gigawatts of energy from Constellation's Clinton Clean Energy Center in Illinois -- the entire output from the site's nuclear reactor. The deal is more evidence of big tech's newfound interest in nuclear energy. Tech companies are finding current options insufficient to power the massive data centers that power today's exceptionally power-hungry artificial intelligence (AI) models. Nuclear energy offers a reliable power source for the demands of AI. Cameco, the largest provider of uranium in the world -- the material that fuels nuclear reactors -- will benefit from this deal and any like it in the future. It is clear that as the AI arms race continues, demand for power will only grow, and as attitudes toward the controversial energy source soften, demand for uranium will grow as well. As the largest player in the space, Cameco is a solid addition to a well-diversified portfolio for investors who want exposure to uranium stocks.

Why Uranium Energy Stock Is Spiking Today | The Motley Fool

The parent company of Facebook and Instagram announced on Tuesday that it has signed a 20-year agreement with Constellation to purchase roughly 1.1 gigawatts of energy from the nuclear company's Clinton Clean Energy Center in Illinois. That is the entire output from the Constellation site's nuclear reactor. The deal is concrete proof of big tech's newfound interest in nuclear energy. With the advent of generative AI, tech companies are finding current options insufficient to power the massive data centers that power today's exceptionally power-hungry artificial intelligence (AI) models. Nuclear energy offers a reliable and powerful-enough output to meet the demands of AI without emitting greenhouse gases. Uranium Energy, which provides the uranium that powers reactors like the one Meta will now draw on, saw its stock lifted on the news of Meta's deal. Investors appear to believe more deals like it will be inked in the years to come, and demand for uranium will spike, boosting Uranium Energy's bottom line. I think Uranium Energy can be a solid addition to a well-diversified portfolio for investors who want exposure to stocks in the uranium space. It is fast growing, and if this trend in big tech's reliance on nuclear power continues, the company is likely to benefit.

Why Constellation Energy Stock Surged 37% in May | The Motley Fool

Constellation Energy reported strong first-quarter results in early May. The power producer generated $2.14 per share of adjusted operating earnings, up from $1.82 per share in the year-ago period, a nearly 18% increase. The company benefited from the strong performance of its business. That strong showing gave the company the confidence to reaffirm its full-year outlook that it will generate between $8.90 and $9.60 per share of adjusted earnings. The company also noted that it remains on track to close its acquisition of Calpine by the end of this year. That deal will significantly expand its leading clean energy fleet, enhancing its earnings growth rate. In addition, grid operator PJM selected the company's Crane Clean Energy Center to be fast-tracked for interconnection to the grid. Constellation Energy is restarting the dormant nuclear power plant to help support the cloud and artificial intelligence (AI) power needs of tech giant Microsoft. The company is working to restart the 845-megawatt nuclear power generating unit by 2028. It previously shut down the plant for economic reasons. Constellation Energy is bringing that plant back online to help support an expected surge in power demand in the coming years from AI data centers and other catalysts. The country's growing need for power led Trump to sign executive orders last month aimed at ushering in a nuclear renaissance in the country. The president wants to build more nuclear reactors in the country to help supply more power to the grid. Constellation Energy applauded the move. In a statement on the nuclear executive orders, the company commented, "We applaud the Trump administration for its strong support for preserving and expanding America's nuclear fleet to power our economy, win the AI race against China, and reassert America's leadership in nuclear energy." The energy company also highlighted that it's "walking the walk with plans to invest billions of dollars into its fleet on projects like increasing the generation capacity of our plants by up to 1,000 additional megawatts and relicensing the entire fleet into the 2070s." Shares of Constellation Energy have rallied sharply over the past year, powered by the anticipated surge in demand for nuclear energy. The resurgence continued in early June when the company signed a 20-year power purchase agreement with Meta Platforms for power produced at its Clinton Clean Energy Center (1.1 gigawatts). Growing demand for nuclear energy plus the company's pending Calpine deal position Constellation Energy to grow its earnings briskly in the coming years (more than 13% annually through 2030 without the boost from Calpine). That's a robust rate and could continue powering a surge in Constellation's stock in the coming years.

Why Constellation's News Drove Fluor, Centrus, and Vistra Stocks Higher | The Motley Fool

Constellation's big nuclear news today inspires nuclear investors to buy... everybody but Constellation Energy. Nine months after announcing plans to restart Three Mile Island Unit 1 and use it to provide nuclear power to Microsoft server farms, Constellation Energy (CEG 1.61%) is doing it again -- announcing it's signed a similar deal with Meta Platforms (META -0.18%). Investors reacted immediately, bidding up Constellation shares as much as 15% pre-market open today (although the stock has given back its gains, and is now flat against yesterday's close). In contrast, all sorts of other nuclear stocks are surging today. Constellation rival Vistra (VST 6.01%) gained 4.4% through 11:10 a.m. ET today. Nuclear plant construction firm Fluor (FLR 6.05%) stock is up 5.1%. And uranium fuel enricher Centrus Energy (LEU 7.51%) is doing best of all -- up 7.1%! Constellation described its latest nuclear power deal in a press release this morning. Instead of 3 Mile Island, the company will use its Clinton Clean Energy Center (CCEC) nuclear power plant in Illinois to provide power to Meta's server farms. Beginning in June 2027 and extending out 20 years, the company will provide 1,121 megawatts (more than 1.1 gigawatts) of clean nuclear energy to Meta. The deal will support Constellation's plans to increase power output at CCEC by 30 megawatts. It will also extend the service life of the CCEC nuclear plant, which was first slated to close in 2017, and then had its lifespan prolonged through mid-2027, well into the 2040s. Furthermore, Constellation noted that if power demand justifies it, the company might "extend the plant's existing early site permit or seek a new construction permit from the Nuclear Regulatory Commission to pursue development of an advanced nuclear reactor or small modular reactor (SMR) at the Clinton Clean Energy Center site." So you can see why investors were so happy about Constellation's news this morning. For Constellation itself, the plan promises to leverage an existing investment and decades of sunk costs, to earn at least another 22 years' worth of profits for its shareholders. (For context, Constellation earned $3.7 billion from its power business last year.) But the news has broader implications for the nuclear power industry as well. Earlier this year, as you may recall, nuclear stock investors got something of a shock when it was reported that Microsoft might be hedging its bets on future demand for artificial intelligence (AI) services, and for the kind of power agreements it signed with Constellation to support them. Microsoft was reported to have canceled "a couple of hundred MWs" worth of data center leases in the United States, and to have "pulled back" on projects to lease new data center space. Granted, one theory behind the pullback was that Microsoft wasn't able to find enough power for new data centers. But a secondary theory -- one concerning to nuclear investors -- was that Microsoft might not see enough future demand for AI to justify buying additional power even if it is available. Today's power supply agreement between Meta and Constellation, however, would appear to allay those concerns somewhat. Maybe Microsoft doesn't see a need for a lot of additional nuclear power, beyond what it's already contracted for. But Meta definitely does, and has just signed up to pay for it. Now investors have to figure out how to react to this good news. Should you do that by buying Fluor stock, which helps build nuclear power plants? Or perhaps Centrus, which helps fuel them? Or is Vistra the better buy, as a direct competitor to Constellation and a presumed beneficiary of any trends that bolster Constellation? That's not quite as easy a question to answer as it should be, however. At first glance, Fluor stock looks like the obvious buy. Priced under 4 (!) times earnings, Fluor stock certainly looks a lot cheaper than Centrus stock, which costs more than 19 times earnings, or Vistra, which costs more than 26.5 times earnings. Fluor's earnings are currently inflated by one-time accounting gains related to its NuScale subsidiary, however. Once those gains roll off the back end next year, though, the stock's valuation will rise to a more reasonable-looking 17.5 times forward earnings. If you're contemplating an investment in Fluor, make sure to focus on that number. Vistra stock, meanwhile, only recently turned profitable again. But it's growing like wildfire, earning $1.5 billion in 2023 and $2.6 billion in 2024 -- and expected to keep growing earnings in excess of 20% annually over the next five years. Vistra's dividend yield is tiny, only 0.5%, and its debt load is large. Still, I have a hunch it will make for a simpler investment than Fluor. But Centrus is the investment that intrigues me most. Valued at just a $2.1 billion in market cap, Centrus has arguably the best growth prospects ahead of it as nuclear power becomes more popular. Profitable and with earnings expected to roughly double over the next four years, to more than $8 a share, resulting in about a 25% growth rate, tiny Centrus Energy just might be your best nuclear bet.

Why Are Constellation Energy's Shares Surging Today? Hint: It's AI | Investing.com UK

Constellation Energy (NASDAQ:CEG) shares exploded over 13% in premarket trading to $355.50 following the announcement of a groundbreaking 20-year nuclear power agreement with Meta Platforms (NASDAQ:META). The deal secures 1,121 megawatts of emissions-free nuclear energy from Constellation's Clinton Clean Energy Center to fuel Meta's artificial intelligence ambitions, highlighting the critical role nuclear power plays in supporting energy-intensive AI operations. Constellation Energy shares closed at $313.43 on June 2, 2025, up 2.38% for the day, before exploding 13.42% in premarket trading to $355.50 following the Meta partnership announcement. The utility company has been among the market's top performers, with year-to-date gains of 40.56% compared to the S&P 500's modest 0.92% increase. Over the past year, Constellation has delivered impressive returns of 45.24% versus the broader market's 12.48% gain, while its three-year performance shows a staggering 404.39% increase compared to the S&P 500's 42.12% rise. The company's market capitalization now stands at $98.234 billion, reflecting investor confidence in the nuclear power revival driven by AI and data center demand. Constellation's 52-week range spans from $155.60 to $352.00, with the premarket surge pushing the stock to new highs. The company maintains strong financial metrics including a trailing P/E ratio of 33.03, forward P/E of 32.89, and robust profit margins of 12.33%. With revenue of $24.2 billion and net income of $2.98 billion, Constellation demonstrates the financial strength needed to capitalize on the growing demand for clean, reliable power from technology companies. Analyst price targets range from $184.05 to $385.00, with an average target of $295.84, suggesting continued upside potential as the AI-driven energy demand story unfolds. Constellation and Meta signed a comprehensive 20-year power purchase agreement for the output of the Clinton Clean Energy Center, providing 1,121 megawatts of emissions-free nuclear energy beginning in June 2027. The deal represents a landmark partnership that demonstrates how technology giants are turning to nuclear power to meet the massive energy requirements of artificial intelligence infrastructure and data centers. Meta's Head of Global Energy, Urvi Parekh, emphasized that "securing clean, reliable energy is necessary to continue advancing our AI ambitions," highlighting the direct connection between nuclear power and AI development. The agreement supports Meta's commitment to match 100% of its electricity use with clean and renewable energy while providing the reliable baseload power essential for AI computing operations that cannot tolerate interruptions. The partnership will enable Constellation to expand Clinton's clean energy output by 30 megawatts through plant uprates, increasing total capacity to support growing demand from technology companies. The deal essentially replaces Illinois's ratepayer-funded Zero Emission Credit program, providing a market-based solution that ensures long-term operations without taxpayer support. This represents a new model for nuclear plant economics, where private technology companies directly contract for nuclear power to support their operations rather than relying on regulated utility structures. The agreement runs through 2047, providing two decades of revenue certainty for Constellation while giving Meta guaranteed access to clean, reliable power for its AI infrastructure investments. The Constellation-Meta deal underscores the growing recognition that artificial intelligence's massive energy requirements are driving a nuclear power renaissance across the technology sector. AI data centers require enormous amounts of reliable, constant power that cannot be met by intermittent renewable sources like wind and solar alone, making nuclear power an attractive solution for tech companies seeking both clean energy and operational reliability. The Clinton Clean Energy Center was originally slated for premature closure in 2017 due to financial losses, but the facility's fate has been transformed by the AI boom and resulting energy demand from technology companies. Meta's decision to secure nuclear power for its AI operations reflects broader industry trends, as companies like Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), and Google (NASDAQ:GOOGL) (NASDAQ:GOOG) have all announced major investments in nuclear power to support their cloud computing and AI infrastructure. The 1,121 megawatts of nuclear capacity secured by Meta is enough to power over 800,000 homes, illustrating the scale of energy required to support advanced AI operations and the significant impact these deals have on utility companies like Constellation. Nuclear power offers several advantages for AI applications, including 24/7 reliability, carbon-free generation, and the ability to provide large blocks of consistent power without the variability associated with renewable sources. *** Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

Constellation Energy Shares Jump on Nuclear-Power Supply Deal With Meta

Constellation Energy shares rose in premarket trading Tuesday on the back of a new 20-year deal to supply nuclear power to Meta Platforms to power its artificial-intelligence infrastructure. Constellation shares traded 14% higher ahead of the morning bell at $357.02. Under the terms of the agreement, the Baltimore, Md.-based energy company will supply Meta's operations with 1,121 megawatts of emissions-free nuclear energy from the Clinton Clean Energy Center in Illinois. Starting in 2027, the deal with Meta will allow Constellation to apply for relicensing and continued operations of the Clinton nuclear facility for another two decades after the state's ratepayer-funded zero-emission-credit program expires, Constellation said. The deal will also set the stage for upgrades to the plant to squeeze out an extra 30 megawatts of power, and will enable the center to supply the entire grid more broadly as well, said Constellation. Meta is part of the big-tech push to build large data centers that require massive amounts of power to run. Write to Adriano Marchese at adriano.marchese@wsj.com