Meta Platforms Is Going Nuclear to Power its AI Technologies

Core Viewpoint - Meta Platforms is investing in artificial intelligence technologies that require substantial energy, leading to partnerships with clean energy producers to secure power for its operations [1][2]. Group 1: Power Purchase Agreements - Meta has signed a 20-year power purchase agreement (PPA) with Constellation Energy for the entire output of the Clinton Clean Energy Center, which produces 1,121 megawatts (MW) [4][5]. - This agreement will provide Meta with clean and reliable energy, supporting its goal of powering 100% of its operations with clean power [5][6]. - The deal is set to begin in June 2027 and will also support the relicensing of the nuclear facility, allowing for an expansion of its output by 30 MW [4][9]. Group 2: Nuclear Power's Role - Nuclear power offers a stable energy source, operating continuously throughout the year, which is essential for the energy demands of data centers [6]. - Meta's agreement with Constellation Energy is part of a broader strategy, as the company is in discussions for additional power sources, aiming to secure 1 to 4 gigawatts (GW) from advanced energy technologies [7][8]. Group 3: Economic Impact and Growth - The Clinton Clean Energy Center was at risk of closure due to financial losses, but the Future Energy Jobs Act has provided support to keep it operational until mid-2027 [8][9]. - Meta's PPA will extend the economic viability of the plant for another two decades, enhancing Constellation Energy's growth outlook [9][12]. - The demand for nuclear energy from technology companies is driving a surge in Constellation Energy's earnings, with expectations of over 13% compound annual growth through 2030 [12][13]. Group 4: Industry Trends - The increasing energy needs of AI technologies are prompting partnerships between tech companies and energy producers, making investments in companies like Constellation Energy attractive for those looking to capitalize on the AI megatrend [14].