Constellation Plans $4.3 Billion Reactor Upgrades Under Google Deal

Constellation Energy shares rose 12.2% on October 6 after the company announced a 20-year deal with Google. The agreement calls for $4.3 billion in upgrades to 11 existing reactors, adding 890 megawatts of nuclear power.

A separate 15-year agreement covers 2,700 megawatts from Constellation’s existing nuclear fleet. The company expects its first upgrade by 2028, while the full 890-megawatt expansion is not expected until 2032.

The article’s author argues that upgrading reactors can cost less than building new ones. The story compares Constellation’s planned spending with more than $35 billion spent on the Vogtle 3 and 4 reactors in Georgia, which together provide about 2,200 megawatts. It also notes that the projects differ in scope and timing.

The article said Constellation’s shares remained about 18% lower for the year despite the rally. It cited a forward non-GAAP price-to-earnings ratio of 22.04, below the five-year average of 26.53. Analysts expected earnings per share to grow 29% in 2026 and 24% in 2028, according to the article.

The author pointed to long-term contracts as a source of revenue visibility, while noting that increased debt and capital spending remain risks. The article put net debt near $24 billion, largely following the Calpine acquisition.