Why Constellation Energy Rallied Nearly 60% in 2025

Core Insights - Constellation Energy's shares surged by 57.9% in 2025, driven by increased electricity demand and its role in the AI sector [1] - The company announced a significant acquisition and secured a major power purchase agreement with an AI giant, benefiting from reduced regulatory barriers [2] Acquisition Details - Constellation announced the acquisition of Calpine for a total equity value of $16.4 billion and an enterprise value of $26.6 billion, enhancing its portfolio with natural gas and geothermal assets [3] - The acquisition positions Constellation to leverage its existing nuclear fleet alongside new renewable energy sources, addressing the growing need for reliable, zero-carbon power [4] Electricity Demand Projections - U.S. electricity demand projections for 2035 saw substantial increases, with ERCOT and PJM regions expecting peaks to rise by 81% and 31% respectively compared to previous estimates [5] - This surge in demand has led analysts to upgrade their targets for utility and power generation stocks, with Constellation being highlighted as a top pick in the independent power producer sector [6]