Constellation Energy, October 2026: Google's 3.6 GW Deal and Amazon's Calvert Cliffs PPA

CEG closed at $300.4, up 12.2% on the session on October 6, 2026. October also brought reports of a 3.6 GW Google power agreement in PJM and a 20-year Amazon nuclear PPA at Calvert Cliffs, with the two deals together reportedly covering 1.1 GW of new nuclear capacity and $4.3 billion in Google-side investment.

Constellation Energy's shares closed at $300.4 on October 6, 2026, a gain of 12.2% on the session — a marked recovery for a stock that had been reported trading roughly a third below its prior peak as recently as August. No report in coverage attributed the session move to a specific catalyst, though October brought a cluster of significant announcements: a reported 3.6 gigawatt power agreement between Google and Constellation covering the PJM Interconnection service area, alongside a natural gas baseline component, and a separate 20-year power purchase agreement between Amazon and Constellation at Maryland's Calvert Cliffs nuclear plant. According to coverage, the two deals together account for approximately 1.1 gigawatts of nuclear capacity expansion, with the Google portion valued at $4.3 billion and 890 megawatts of new nuclear generation.

The PJM geography is the operative detail. PJM Interconnection is the largest wholesale electricity market in North America and the grid backbone for the mid-Atlantic data centre corridor stretching from Northern Virginia into Maryland — precisely where hyperscaler build-out pressure is most acute. The challenge for cloud operators is not capacity per se but firm, dispatchable baseload: generation that runs continuously regardless of weather, which nuclear provides and variable renewables do not. Locking in 20-year tenors with both Google and Amazon on nuclear-backed capacity gives Constellation the long-duration revenue certainty that justifies the capital intensity of nuclear uprates, while offering buyers the 24/7 carbon-free certification increasingly demanded by corporate sustainability commitments.

This hyperscaler book has been built incrementally across 2026. In June, Constellation signed a 176 MW, 15-year nuclear PPA with Walmart — reported widely as Walmart's first nuclear power agreement, covering an Illinois AI and supply-chain data centre operation. By the second-quarter earnings report in August, the company had added 920 megawatts of new clean power agreements and raised its full-year earnings-per-share guidance to $12.00, citing strong nuclear performance; progress on the restart of the Crane nuclear facility was also reported at that time. Underpinning the enlarged capacity offering is the Calpine merger, completed January 7, 2026, per a filing with the SEC, which added a substantial natural gas generating fleet to Constellation's nuclear base.

Capital deployment reflects the scale of the transformation. On Slicast's compilation of SEC XBRL data, Constellation's capital expenditure reached $2.95 billion in fiscal year 2025, a 15.0% increase from $2.56 billion in FY2024, against revenue of $22.66 billion. At a 13% capex intensity ratio, Constellation ranks second among seven power peers in the dataset, behind Vistra (VST); in absolute terms it leads the eight-company group. The cadence has accelerated: in the single quarter ended March 31, 2026, Constellation deployed $1.27 billion — the largest quarter in Slicast's dataset covering 23 reporting periods back to 2020.

The investment thesis carries real counterweights. As recently as August, analysts were publicly framing CEG as a bull-versus-bear stock with the shares roughly a third off their high, with grid integration challenges and execution risk on the PPA pipeline both cited. Duke Energy offers a gas-centric alternative for the same hyperscaler procurement budget, a different risk-reward that gives buyers and investors a credible competing narrative. Nuclear capacity uprates and plant restarts are technically demanding and subject to regulatory timelines that can extend. A 424B4 filed in June 2026 disclosed an offering of 11,000,000 shares by selling shareholders — no impact on operations, but a structural reminder that the shareholder register is still rotating through the new energy-transition trade. Three signals will matter most in the coming quarters: the regulatory and operational timeline for the Crane restart; whether the Google and Amazon agreements are followed by a third major hyperscaler PPA; and whether the elevated first-quarter 2026 capital spending translates into disclosed contracted capacity additions in the next earnings cycle.