Constellation Energy and nuclear sector identify AI as primary long-term power purchase agreement growth driver.
Constellation Energy Corporation benefits from increasing demand for dependable, carbon-free energy from commercial and industrial customers. Its large-scale nuclear fleet, proven operational expertise, and ability to structure customized long-term power purchase agreements create a durable competitive advantage in a market increasingly focused on decarbonization.
On June 23, 2026, the company announced it had entered into a long-term power purchase agreement with Walmart to provide nearly 176 megawatts of emissions-free electricity from the Dresden Clean Energy Center in Illinois under two 15-year contracts beginning in 2029 and 2030. The deal highlights the growing value of existing nuclear assets as businesses seek reliable, carbon-free electricity through long-term power agreements.
Earlier, in June 2025, Constellation signed a 20-year agreement to supply Meta with 1,121 megawatts of emissions-free nuclear power from the Clinton Clean Energy Center starting in 2027. The agreement supports the plant's continued operations, funds upgrades that add 30 megawatts of capacity, and generates $13.5 million in annual tax revenues for the state.
Long-term power purchase agreements provide stable, predictable revenues while shielding companies from wholesale electricity price volatility. They facilitate investment in new power generation projects, strengthen customer relationships, and create opportunities for capacity expansion—ultimately supporting long-term earnings growth and shareholder value.
Constellation is well-positioned to secure additional long-term agreements as companies accelerate their carbon reduction efforts. By improving the performance of existing nuclear plants and making strategic investments, the company can accommodate more contracts with customers, which will boost both earnings and cash flow.
The broader industry reflects this trend. In February 2026, AES Corporation entered into a 20-year power purchase agreement with Google to develop co-located energy projects for a new data center in Texas, while TotalEnergies announced two 15-year agreements to supply 1 gigawatt of solar power to Google from projects under development in the same state.
Constellation's earnings-per-share growth is expected to accelerate, with Zacks Consensus Estimates indicating increases of 25.03% and 16.02% for 2026 and 2027 respectively, year over year. The company's trailing-12-month return on equity stands at 16.81%, well ahead of the industry average of 7.15%.