Amazon and Constellation Energy have entered into a 20-year power purchase agreement under which the utility will supply 690 megawatts of nuclear energy from the Calvert Cliffs Clean Energy Center in Maryland. The agreement includes provisions for capacity upgrades totaling 190 megawatts to be completed between 2030 and 2032, supported by more than $3 billion in infrastructure investment across the facility.
Calvert Cliffs operates two nuclear reactors with combined capacity of approximately 1,790 megawatts, sufficient to power roughly 1.3 million homes. All electricity generated under the agreement will flow into the PJM Interconnection regional grid, which serves 13 states and includes areas where Amazon operates multiple data centers. The parties have also established a related retail supply agreement to support Amazon’s operations across the broader PJM market.
Analysts view the contract as significant for both parties and the energy sector more broadly. The deal provides Constellation with long-term revenue certainty that is expected to support a 20-year license extension for the facility and potential development of additional clean energy projects on-site. Financial projections suggest the agreement could generate substantial free cash flow benefits for the utility, with estimated upside ranging from $86 million to $224 million depending on pricing structures.
The agreement reflects broader trends in the energy sector, where technology companies increasingly seek long-term nuclear power contracts to reliably fuel artificial intelligence data centers. Industry observers note the PJM region has faced recent regulatory challenges and investor uncertainty, making this agreement a notable commitment in an area that has experienced hesitancy regarding new data center power agreements. Constellation’s stock price rose approximately 4 percent in pre-market trading following the announcement.
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