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Amazon is locking in nuclear power for the next two decades under a deal with Constellation Energy that will support more than $3 billion in infrastructure investment as electricity demand continues to climb.
The 20-year agreement covers 690 megawatts of power from Constellation’s Calvert Cliffs Clean Energy Center in Maryland and will support a roughly 190-megawatt expansion expected to go online between 2030 and 2032, the companies announced Wednesday.
Amazon and Constellation also entered into a retail electricity supply agreement covering Amazon operations across the 13-state PJM market. The companies said the arrangement will help Amazon manage energy costs for its locations throughout the region.
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Amazon signage during the 2024 CES event in Las Vegas Jan. 10, 2024. (Bridget Bennett/Bloomberg via Getty Images)
The long-term commitment will also provide Constellation with greater revenue certainty as it seeks to extend the operating licenses of Calvert Cliffs for another 20 years. The plant’s two reactors are licensed through 2034 and 2036.
The agreement comes as Amazon and other technology companies seek large amounts of reliable electricity to support expanding data center and artificial intelligence infrastructure, fueling renewed corporate interest in nuclear power as a source of around-the-clock generation.
Amazon and Constellation also entered into a retail electricity supply agreement covering Amazon operations across the 13-state PJM market. (Scott Olson/Getty Images)
Amazon has already made several moves into nuclear energy, including a $500 million investment in advanced nuclear developer X-energy and an agreement with Energy Northwest to support the development of small modular reactors in Washington state.
Unlike a direct connection between a power plant and a data center, electricity generated at Calvert Cliffs will continue flowing into the PJM regional grid rather than being routed exclusively to Amazon facilities.
“This agreement demonstrates how private investment can strengthen critical energy infrastructure,” Constellation Chairman, President and CEO Joe Dominguez said.
“Amazon’s commitment supports the long-term operation of Calvert Cliffs for generations to come and creates a strong foundation for future investment in both the facility and in advanced nuclear technologies.”
A conveyor belt moves packages at an Amazon warehouse. (Justin Tallis/AFP via Getty Images)
Calvert Cliffs is Maryland’s only nuclear power plant and can produce up to 1,790 megawatts of electricity, enough to power the equivalent of more than 1.3 million homes. The plant employs more than 800 people.
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“Amazon is committed to investing in carbon-free energy to strengthen the grid and benefit the communities where we operate,” Kerry Person, vice president of AWS Global Operations and Data Center Delivery, said.
“This long-term agreement with Constellation sustains the continued operation and expansion of Maryland’s largest source of carbon-free energy, supports hundreds of jobs and brings significant new generation to the regional grid.”
