Google makes a fresh bet on nuclear power as the AI energy crunch intensifies

Constellation Energy's shares rose sharply after the company signed an agreement with Google that amounts to as much power as a new nuclear reactor would supply. The deal reflects a broader trend: the electricity demands of artificial intelligence are growing faster than the grid can easily accommodate, pushing major technology companies toward firm, low-carbon power sources.

For investors, the development highlights how AI's expansion is reshaping energy markets. Nuclear operators with existing capacity are drawing renewed attention because their output is steady and does not depend on weather, unlike solar and wind. That reliability matters for data centers that must run continuously.

What to watch: whether similar agreements follow, how regulators treat these arrangements, and whether the added demand translates into higher revenues for power producers over time. The deal also raises longer-term questions about grid capacity and the pace at which new generation can come online.