Amazon, Constellation back expansion of Maryland’s only nuclear plant amid data center boom
Constellation Energy operates the nation's largest fleet of nuclear power plants, including Calvert Cliffs Nuclear Power Plant on the Chesapeake Bay in Lusby, Maryland. (Kim Hairston/Baltimore Sun/Tribune News Service via Getty Images)
LUSBY, Md. - Online retail giant Amazon and carbon-free energy producer Constellation announced a 20-year agreement Thursday to support the expansion of Maryland's only nuclear power facility, the Calvert Cliffs Clean Energy Center.
The deal highlights a major shift in how energy producers, technology companies and regional electric grids interact.
What we know:
The agreement will enable more than $3 billion in infrastructure investments at the facility in Lusby, Maryland, which serves as the state's largest source of clean energy.
The Calvert Cliffs plant currently produces about 80% of Maryland's clean energy and generates enough electricity to power more than 1.3 million homes. The plant employs more than 800 workers.
The planned investments will fund improvements across the entire 1,790-megawatt plant and add 190 megawatts of new generating capacity between 2030 and 2032.
As part of the deal, Amazon and Constellation entered into a retail supply agreement to support Amazon's operations across the PJM market, a regional power grid that spans 13 states, including Delaware, Maryland, New Jersey, Pennsylvania, Virginia, and West Virginia. The agreement will help Amazon manage energy costs for its facilities across the region while all electricity generated at the plant will continue to flow directly to the PJM grid.
The partnership will provide Constellation with the financial certainty it needs to relicense the plant for another 20 years and secure its operation while advancing plans to develop a new clean energy plant at the Calvert Cliffs site.
Dig deeper:
Nuclear energy provides a 100% carbon-free power source that operates consistently, allowing tech companies to pursue their climate goals while scaling AI-related businesses and data center operations.
The added generating capacity and guaranteed long-term operation of Maryland's plant are expected to bolster overall grid stability. The announcement comes after warnings from PJM about potential electricity shortages in the coming decade driven by retiring coal plants and skyrocketing demand for electricity from data centers.
The deal comes as other large tech companies make similar moves in the region. In Pennsylvania, Microsoft backed an agreement to reopen the shuttered Three Mile Island nuclear plant. Amazon previously acquired a data center campus connected to a nuclear plant in Pennsylvania.
What they're saying:
"This agreement demonstrates how private investment can strengthen critical energy infrastructure," said Joe Dominguez, chairman, president and CEO of Constellation. "Amazon's commitment supports the long-term operation of Calvert Cliffs for generations to come and creates a strong foundation for future investment in both the facility and in advanced nuclear technologies."
"This long-term agreement with Constellation sustains the continued operation and expansion of Maryland's largest source of carbon-free energy, supports hundreds of jobs, and brings significant new generation to the regional grid," said Kerry Person, vice president of AWS Global Operations and Data Center Delivery.
The Source: Information in this article is from Amazon and Constellation.