stellation Energy (US:CEG) The Motley Fool·2026-01-31 22:19Core Insights - Constellation Energy is strategically positioned to benefit from the increasing demand for energy from new data centers, particularly those focused on artificial intelligence [1][8] Company Overview - Constellation Energy has a market capitalization of $88 billion and a current stock price of $280.68, with a 52-week range of $161.35 to $412.70 [3] - The company has a gross margin of 19.30% and a dividend yield of 0.55% [3] Industry Dynamics - The rise of artificial intelligence has led to significant capital expenditures by hyperscalers, which are expanding their data center capacities [2] - AI-focused data centers consume more energy than traditional ones, primarily due to the use of graphics processing units that generate substantial heat and require extensive cooling [3] Strategic Partnerships - Constellation Energy has secured long-term power purchase agreements (PPAs) with major companies like Microsoft and Meta Platforms, ensuring a stable revenue stream [4][7] - The company is the largest producer of carbon-free electricity, aligning with the energy needs of hyperscalers [4] Recent Developments - The acquisition of Calpine Corp. for $26.6 billion has expanded Constellation's capacity to 55 gigawatts, enhancing its ability to provide reliable and dispatchable power [5] - Despite a recent stock sell-off of 30% from its peak of $412 per share, the company has successfully cleared all its PJM capacity in the latest auction, securing revenue at a clearing price of $333.44 per megawatt-day for the 2027-2028 delivery year [6][7]