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.
Overview
In June of last year, Meta Platforms (NASDAQ:META) agreed to buy the clean energy attributes of Constellation Energy's (NASDAQ:CEG) Clinton Clean Energy Center in Illinois for 20 years. The agreement covers 1,121 megawatts of nuclear generation -- more output than Constellation has committed to any other artificial intelligence (AI) buyer. The next-biggest is the roughly 835-megawatt agreement that is restarting a Three Mile Island unit for Microsoft.
But the Meta contract doesn't commence until June 2027, nine months from now. And it means the results Constellation is reporting today, including the guidance it raised with last month's second-quarter report, don't include a dollar from the company's biggest AI agreement.
Details
For investors who own the stock as a way to play AI's power demand, I think the calendar is worth getting straight. Shares go for about $299 as of this writing. Their high over the past year was $412.70. The growth the market is paying for arrives on a schedule.
Source
Originally published at www.fool.com.