On June 3, 2025, Constellation Energy (NASDAQ: CEG) witnessed a remarkable surge in its stock price, climbing over 15%, following a landmark announcement that sent ripples through both the energy and technology sectors. Meta Platforms (NASDAQ: META), the tech giant behind Facebook, signed a groundbreaking 20-year agreement to purchase nuclear energy from Constellation’s Clinton Clean Energy Center in Illinois. This deal marks Meta’s first official foray into nuclear power, signaling a significant shift in how major technology companies are sourcing their energy to fuel their rapidly expanding digital infrastructure.
Starting in June 2027, Meta will acquire the entire 1.1-gigawatt output from the Clinton facility’s single nuclear reactor. While the plant won’t directly power Meta’s data centers, the energy will feed into the regional grid, supporting Meta’s ambitious goal of achieving 100% clean electricity. This agreement not only helps Meta meet its soaring energy demands—especially as its AI operations scale—but also plays a critical role in preventing the premature closure of the Clinton plant, which was at risk after its zero-emissions credit expired.
Joe Dominguez, CEO of Constellation Energy, emphasized the importance of the deal, stating, “Sometimes the most important part of our journey forward is to stop taking steps backwards.” His comment underscores how this partnership is about sustaining existing clean energy infrastructure, not just building new sources. Additionally, the agreement will boost the Clinton plant’s output by 30 megawatts, further enhancing its contribution to the grid.
Meta’s commitment to nuclear energy extends beyond this deal. In December 2024, the company issued a request for proposals to add up to 4 gigawatts of new nuclear capacity in the U.S., with a keen interest in advanced technologies like Small Modular Reactors (SMRs). Urvi Parekh, Meta’s global head of energy, highlighted the strategic necessity of clean, reliable power, noting, “Securing clean, reliable energy is necessary to continue advancing our AI ambitions.” This reflects how energy procurement is becoming foundational to the tech giant’s future growth and innovation.
The Meta-Constellation agreement fits into a broader trend of tech companies embracing nuclear energy to meet their massive power needs. Microsoft, for instance, signed a similar 20-year deal with Constellation to power its facilities via the planned restart of the Three Mile Island nuclear plant. Google has pledged support for three new nuclear sites and partnered with Kairos Power to develop advanced modular reactors. Amazon, too, has invested over $500 million into SMR development and acquired a nuclear-powered data center campus earlier this year. Collectively, these companies signed a pledge led by the World Nuclear Association in March 2025, committing to triple global nuclear capacity by 2050.
This wave of nuclear energy adoption by tech giants is reshaping the energy landscape. Unlike intermittent renewables such as solar and wind, nuclear provides steady, carbon-free baseload power—a critical advantage as data centers and AI workloads demand uninterrupted electricity. With energy use becoming a bottleneck for digital growth, securing scalable and reliable power sources is not just an environmental imperative but a strategic business move.
Constellation Energy’s stock rally reflects investor confidence in the company’s positioning at the nexus of clean energy and technology. On June 3, 2025, shares surged to $349.95, marking a 12% rise. Analysts remain cautiously optimistic, with an average price target around $294.67, though some forecasts suggest potential downside risks amid market volatility. The company’s strong financials bolster its outlook: in May 2025, Constellation reported GAAP earnings of $0.38 per share and adjusted operating earnings of $2.14 per share—up $0.32 from the previous year. Its nuclear generation capacity remains robust, with over 41 million megawatt-hours produced at a 94.1% capacity factor, while refueling outages average 24 days, significantly shorter than the industry norm.
Constellation’s strategic acquisition of Calpine is expected to add at least $2 per share in earnings and $2 billion in free cash flow starting in 2026. Additionally, inflation adjustments are projected to contribute an incremental $500 million in revenues by 2028. The company also retains approximately $1 billion in share buyback authorization, signaling confidence in its growth trajectory.
However, challenges remain. The regulatory environment, particularly around behind-the-meter configurations, faces delays tied up at the Federal Energy Regulatory Commission (FERC). Rising costs for new power generation assets, including combined cycle machines and solar with storage, add complexity to future projects. Skepticism about overly optimistic demand forecasts for data centers also tempers enthusiasm. Moreover, the reconciliation process for the Inflation Reduction Act (IRA) and nuclear tax credits could be bumpy, affecting financial strategies.
On the regulatory front, the U.S. nuclear industry is enjoying supportive momentum. President Donald Trump recently signed four executive orders aimed at accelerating nuclear deployment, setting a bold target to quadruple U.S. nuclear power capacity by 2050. These orders call for an overhaul of the Nuclear Regulatory Commission, faster permitting processes for reactors—including SMRs—and the development of domestic fuel supply chains. Constellation has indicated it may seek approval from the NRC to build a Small Modular Reactor at the Clinton site, potentially expanding its nuclear footprint further.
The stock market’s reaction to these developments was telling. While major indexes like the Dow Jones showed mixed performance on June 3, 2025, nuclear energy stocks broadly rallied. Constellation Energy and other nuclear-related companies soared at the market open, fueled by optimism over the growing partnership between tech and nuclear power sectors. This surge follows a similar rally in late 2024, after Constellation secured a 20-year agreement with Microsoft for power from the Three Mile Island plant.
The Meta deal is more than just a contract; it’s a bellwether for a future where utilities evolve beyond traditional household service providers to become critical enablers of the digital economy. As AI, metaverse labs, and data centers demand ever-increasing amounts of clean, reliable electricity, long-term agreements like this one offer predictable revenue streams for energy companies and energy security for tech firms.
Analysts currently rate Constellation Energy as a Moderate Buy, with a price target slightly below current trading levels, reflecting cautious optimism. Meta, meanwhile, holds a Strong Buy consensus, with a modest upside anticipated as the company leverages energy stability to scale its AI ambitions efficiently.
Ultimately, the Meta-Constellation partnership underscores a pivotal moment in the energy transition. Nuclear power, once viewed as a niche player, is now central to the strategies of some of the world’s most influential technology companies. This confluence of clean energy and digital innovation could set the stage for a new era of sustainable growth, where cutting-edge technology and carbon-free power go hand in hand.
