To The Moon

The AI boom is creating an unexpected investment opportunity: electricity.

On October 9, $Constellation Energy Corp(CEG)$ rose 3.22% during regular trading as investors continued assessing its landmark power agreement with Google.

But the bigger story isn’t just one day’s share-price movement. It’s how technology companies are securing electricity for the next generation of AI data centres.

⚛️ 1. A 20-Year Deal With Google

Google has signed a 20-year agreement with Constellation to support the addition of 890 MW of new nuclear capacity to the US PJM electricity grid.

The agreement supports more than $4.3 billion in investment to upgrade existing nuclear facilities, with the first additional capacity expected in 2028.

Google has also agreed to a separate 15-year electricity supply arrangement covering another 2,700 MW.

Together, the agreements cover 3,590 MW of electricity supply, giving Constellation longer-term commercial commitments. 

🔌 2. Why This Matters for Investors

AI data centres need reliable electricity around the clock. As computing demand grows, technology companies are looking beyond chips and servers to secure the power required to operate them.

Constellation operates the largest nuclear fleet in the United States. Its existing infrastructure gives it a potential advantage as companies seek dependable, low-carbon electricity.

Long-term power agreements can also improve revenue visibility and support investment in additional generating capacity.

📈 3. What Could Drive $CEG Higher?

Three factors are worth watching:

• More long-term contracts: Other technology companies could seek similar agreements to secure electricity for data centres.

• Nuclear capacity expansion: Upgrading existing plants could increase electricity output without building entirely new reactors.

• Growing power demand: AI, industrial electrification and other electricity-intensive activities could support demand for reliable generation.

However, these opportunities do not guarantee further share-price gains. Investors still need to consider the valuation, capital expenditure, project execution and regulatory risks.

⚠️ 4. The Risk: Great Business, Expensive Stock?

A major contract can strengthen a company’s outlook, but the market may already have priced in much of the expected benefit.

The upgrades will require substantial investment, and the additional nuclear capacity is not expected to begin arriving until 2028.

The key question is whether future earnings growth will justify the price investors are paying today.

🎯 My Take

$CEG represents an interesting way to research the energy infrastructure behind the AI boom.

Instead of investing only in companies building AI chips, investors can also examine the businesses supplying the electricity needed to run them.

The Google agreement strengthens Constellation’s long-term growth story, but I’d still assess its valuation and expected earnings before considering an entry.

My question: Would you rather invest in $CEG, which generates the electricity, or $NVDA, which supplies the chips powering AI?

Sharing this stock idea for discussion and research purposes only.