Constellation Energy is perhaps the single best-positioned company in this analysis relative to AGI -- its nuclear power plants provide the essential electricity that AGI data centers voraciously consume, and this demand is growing exponentially.
Constellation Energy is the largest producer of carbon-free energy in the United States and the nation's largest operator of nuclear power plants. Spun off from Exelon in February 2022, the company generates and sells electricity from its fleet of nuclear, wind, solar, natural gas, and hydroelectric plants. Constellation also operates a large competitive retail electricity and natural gas supply business serving commercial, industrial, and governmental customers. The company has become a major beneficiary of AI-driven data center electricity demand, including a landmark power purchase agreement with Microsoft for the restart of Three Mile Island Unit 1.
Constellation serves large commercial and industrial electricity consumers, government agencies (including federal, state, and municipal), data center operators (Microsoft, Amazon), and other large energy buyers seeking clean energy. The retail business serves over 2 million residential and business customer accounts. Key PPA customers include major tech companies building AI data centers seeking 24/7 carbon-free electricity.
AGI cannot replace power generation. Constellation Energy operates the largest fleet of nuclear power plants in the United States, along with natural gas, wind, solar, and hydroelectric generation assets. These are massive physical installations producing the electricity that AGI data centers desperately need. In fact, Constellation is one of the most direct beneficiaries of AGI development, as AI workloads are driving unprecedented electricity demand. The company has signed major power purchase agreements with hyperscalers (notably Microsoft's deal to restart Three Mile Island Unit 1). Constellation's customers are utilities, commercial and industrial users, government entities, and increasingly hyperscalers building AI data centers. These customers are not going away -- if anything, AI data center customers represent a massive new demand source.