Constellation Energy's Shares Climb On Meta's Nuclear Power Deal

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 updated on June 3, 2025

Constellation Energy's Tuesday trading saw a sudden spike, ignited by a hefty 20-year deal with Meta.

According to Yahoo! Finance, the agreement promises to power Meta's AI data center expansions, driving a brief 7% surge in Constellation's stock, although it settled with only minimal gains by day's end.

Amid rising demands for energy due to its expanding AI technology infrastructure, Meta finalized a deal to boost their energy supply. This pact will up the output at Constellation's Clinton, Illinois, nuclear facility by an additional 30 megawatts, securing not just energy but also 1,100 jobs.

An In-Depth Look At Constellation And Meta's Power Play

While the financial details of the agreement remain under wraps, the deal symbolizes a significant stride towards sustainable energy solutions for tech giants. Meta sees the nuclear power engagement starting in 2027 as essential for its operations around the region, particularly for those sprawling AI data centers.

Meta's commitment to enlarging its data center capabilities, with a planned expenditure of up to $72 billion in 2025, underscores the tech industry's urgent quest for power solutions that align with clean energy objectives. Power consumption spikes from AI developments are significantly pressing these clean energy ambitions.

Interestingly, Constellation Energy isn't limiting its nuclear energy commitments to just Meta. September 2024 saw it making a similar commitment with Microsoft, aimed to restart the Three Mile Island facility, projecting a robust $785 million in annual revenues by 2030.

Market Dynamics And Competitor Moves In Tech

Meanwhile, other tech giants are not resting on their laurels either. Amazon upped the ante by acquiring a data center campus from Talen Energy for $650 million last year. Oracle has been flirting with the idea of running a data center on small nuclear reactors.

Meta's share price didn't mirror Constellation's initial surge, wavering slightly with less than a 1% drop on Tuesday. Despite this, both companies' moves are pivotal in a sector where power constraints are turning into significant bottlenecks for burgeoning AI ecosystems.

Bank of America's analyst Vivek Arya highlights the criticality of access to reliable power, equating it to the significance of having essential chips and systems for AI deployment. This is certainly a clarion call to the tech industry, urging infrastructural overhauls to keep pace with technological advancements.

The Stock's Roller Coaster: Gains Amid Volatility

Constellation Energy's stock journey has been nothing short of a roller coaster. Just in May and early June this year, it flirted with its 52-week high, peaking close to $337 on Tuesday, following the news of the Meta deal.

However, the jubilation wasn't long-lived. Back in January 2025, the stock had taken a sharp nosedive from its high of $352, primarily due to escalating concerns about the sustainability of demand for AI infrastructure. Meta’s head of global energy, Urvi Parekh, emphasized the importance of securing clean and reliable energy to forward their AI dreams. This insight delves into the strategic imperatives tech giants are now adopting to fend off potential energy deficiencies that could cripple their future expansions.

Conclusion: A Strategic Energy Leap Forward

The dalliance between Constellation Energy and Meta, inked for two decades, is more than just a financial arrangement—it's a robust step towards the future of energy consumption in the tech industry.

This relationship, promising to bolster local employment while powering critical AI infrastructure, isn't just a test of technological advancement but also of foresight in strategic partnerships that could define the energy landscape for the next generation.

As the tech giants strive to sustain their growth trajectories, securing such progressive power solutions could indeed be the linchpin for maintaining their competitive edge in the high-stakes world of AI and big data.

About Alex Tanzer

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