Constellation Energy's Biggest AI Power Deal Doesn't Start Paying Until June 2027
Meta signed a 20-year deal built around one Illinois nuclear plant. The first contracted dollar is still nine months away.
In June of last year, Meta Platforms (NASDAQ:META) reached an agreement to purchase the clean energy attributes of Constellation Energy (NASDAQ:CEG) Clinton Clean Energy Center in Illinois for a period of 20 years. This deal covers 1,121 megawatts of nuclear generation, which is more output than any other artificial intelligence (AI) buyer Constellation has committed to.
The largest AI contract, with roughly 835 megawatts, is for restarting a Three Mile Island unit for Microsoft. However, it's important to note that the Meta contract does not begin until June 2027, nine months from now. Furthermore, the results and guidance that Constellation reported in its latest second-quarter report do not include any revenue from the company's most significant AI agreement.
Investors holding the stock as a means to capitalize on AI's power demand should be aware of this timing difference. Currently, the stock trades at approximately $299, having reached a yearly high of $412.70. The anticipated growth in this market will come at a specific future date.
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