Amazon Invests in Nuclear Power: 20-Year Deal with Constellation Energy for 190 MW

Amazon and Constellation Energy announced a 20-year power purchase agreement (PPA) on September 30, 2026, which will expand nuclear power capacity at the Calvert Cliffs Clean Energy Center in Maryland by 190 megawatts. The agreement requires capital investments of over 3 billion dollars and is part of Amazon's strategy to meet the growing power demand of its data centers with carbon-free energy.

Expansion of existing facility rather than new construction

The additional 190 megawatts of capacity will result from an expansion of the existing Calvert Cliffs nuclear facility. Construction of new reactors is not required for the project. Constellation Energy, the largest operator of nuclear power plants in the United States, has been operating the Maryland facility for decades. The deal provides the company with long-term planning certainty and capital for modernization.

Joe Dominguez, CEO of Constellation Energy, stated on September 30, 2026, that the agreement demonstrates "how private investment can strengthen critical energy infrastructure." Amazon's commitment creates a solid foundation for future investments both in the facility itself and in advanced nuclear technologies.

Strategy for carbon-free electricity

Amazon is driving the expansion of carbon-free power sources to supply its data centers. The power consumption of cloud services and AI applications is rising continuously. With the nuclear power deal, Amazon secures a stable, weather-independent energy source with zero operational CO₂ emissions.

The agreement with Constellation is Amazon's largest venture into nuclear power to date. Unlike solar or wind projects, nuclear power plants provide baseload power around the clock. The 190 megawatts correspond to approximately the electricity demand of around 150,000 households, but at Amazon will be used to operate data centers.

Market reaction to the announcement

Constellation Energy's stock (NASDAQ: CEG) rose up to 5 percent in after-hours trading on September 30, 2026. In late night trading, the stock was up 2.7 percent. Investors viewed the long-term revenue certainty from the 20-year contract positively.

Amazon shares (NASDAQ: AMZN) showed no unusual movements following the announcement. For the company, the investment of over 3 billion dollars is part of a broader strategy to secure its energy supply.

Significance for the US nuclear sector

The deal is a signal of the nuclear power renaissance in the United States. While Europe debates nuclear energy phase-out, American tech companies are increasingly relying on nuclear power for their energy-intensive data centers. Microsoft and Google have announced similar partnerships in recent months.

Expansion of existing facilities is considered faster and more cost-effective than building new reactors. Calvert Cliffs already has the necessary infrastructure and permits. The additional 190 megawatts are expected to become available after modernization work is completed; a specific timeline was not provided.

Outlook and open questions

Constellation Energy plans to use capital from the Amazon deal not only to increase capacity in Maryland but also to invest in new nuclear technologies. Dominguez mentioned "advanced nuclear technologies" as a possible investment target without providing details. This could refer to Small Modular Reactors (SMR), smaller reactor units that are more flexibly deployable than conventional large reactors.

For Amazon, the contract is part of a larger decarbonization plan. The company has committed to becoming carbon-neutral by 2040. Data centers are among the company's largest power consumers. In addition to nuclear power, Amazon is also investing in solar and wind projects, which, however, have variable power generation.

Whether other tech companies will conclude similar long-term contracts with nuclear operators remains to be seen. The announcement from Amazon and Constellation is likely to reinvigorate the discussion about nuclear power's role in the energy transition.