Constellation Energy Announces Power Purchase Agreement With Amazon
On October 1, Constellation Energy's stock rose by over 2% after the company announced a new power purchase agreement (PPA) with Amazon. The deal involves a 20-year contract for 690 megawatts of energy and includes $3 billion in facility upgrades at the Calvert Cliffs Clean Energy Center in Maryland, which houses two nuclear reactors. The investment will expand Constellation's generation capacity by an additional 190 megawatts between 2030 and 2032. The agreement also supports Amazon operations across a 13-state region managed under the PJM market. This partnership is expected to bolster demand for nuclear energy as part of broader efforts toward clean power in the U.S. Analysts suggest that Constellation Energy offers investors a more conservative exposure to the growing interest in nuclear energy compared to companies developing advanced reactors, and its current valuation remains relatively modest.
