US Energy Department offers $5B loan to Constellation to expand nuclear output for data centres
The extra 1.1 gigawatts are largely already contracted by Google, Meta and Amazon, but the loan is not final and consumer rate effects are unclear.
The US Department of Energy has offered Constellation Energy a $5 billion loan to expand nuclear output by 1.1 gigawatts across eight plants, six in Illinois, one in Maryland and one in Pennsylvania. Google, Meta and Amazon have already contracted for most or all of the extra electricity from seven of those sites, which points to data-centre demand as the driver. Constellation plans to uprate 11 reactors, a process that raises capacity through higher enrichment and equipment upgrades, and says it has already committed more than $7 billion to add 1,080 megawatts for those buyers. The loan has not been finalised, and Constellation says it could lower financing costs. The Department argues the deal will bring affordable power to households, but neither the announcement nor the company says whether consumer rates will fall.
Why it matters
The deal shows data-centre demand steering how new nuclear capacity gets built in the US. Eight plants across Illinois, Maryland and Pennsylvania would add power that large tech buyers have largely already claimed, while the loan could lower financing costs for the upgrades. Households are the open question: the Department says the power will be affordable, but neither it nor Constellation has said whether their electricity rates will fall.
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