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Investing.com -- Meta Platforms Inc (NASDAQ:META) has entered into a 20-year agreement to purchase nuclear power from Constellation Energy Corp (NASDAQ:CEG) lifting shares of the energy company up over 14% during pre-market trading on Tuesday.
From June 2027, Meta will begin buying about 1.1 gigawatts of energy from Constellation’s Clinton Clean Energy Center in Illinois, according to an announcement. This amount represents the total output from the site’s single nuclear reactor.
The long-term agreement is expected to ensure the ongoing operation of the plant and aid in its relicensing. The plant was at risk of shutting down following the expiry of its zero-emission credit that it had been depending on since 2017.
Joe Dominguez, Constellation’s president and CEO, expressed pride in partnering with Meta. He noted the importance of supporting the relicensing and expansion of existing plants as being equally impactful as discovering new energy sources.
Constellation also said that it is contemplating applying for a new permit from the Nuclear Regulatory Commission, with the intent to potentially construct a small modular reactor at the Clinton site.
While the financial details of the deal remain undisclosed, it is known that the agreement will boost Clinton’s output by 30 megawatts.
However, the plant will not directly power Meta’s data centers. Instead, it will continue to supply power to the regional grid, contributing to Meta’s objective of using 100% clean electricity.