Google deal adds 890 MW of nuclear energy

Google has announced a new deal with Constellation Energy to bring 890 megawatts (MW) of nuclear capacity to PJM, the largest grid in the United States.

In a statement Google has said that the new 20-year power purchase agreement (PPA) with Constellation Energy will support more than $4.3 billion in upgrades to 11 nuclear units across Illinois, Pennsylvania, and New Jersey. The corporation adds that the deal has been driven by its data centre growth and will unlock more power from Google’s existing energy system for all customers, while sustaining roughly 4,400 existing jobs and supporting approximately 7,200 new construction jobs.

Following this latest PPA, Google has now enabled over 1.5 GW of new nuclear capacity for the US energy system, both by increasing the power output of existing reactors and bringing dormant facilities back online. The corporation explains: “As our data centre investments in the U.S. continue, so does our commitment to revitalize the nation’s energy supply, support local jobs and economic opportunity, and bring new reliable electricity capacity to strengthen U.S. grids at no cost to other ratepayers.”

The deal reflects a growing recognition that renewable generation alone may not be sufficient to meet rapidly rising AI-related electricity demand. As a result, technology companies are increasingly seeking firm, low-carbon power sources capable of operating around the clock.

Google announces its largest ever investment in Europe

The latest nuclear deal follows an announcement from Google last month that it will invest a record €13 billion ($15.1 billion) in digital infrastructure, clean energy, and local partnerships supporting thousands of jobs and helping to fund regional environmental projects across Finland. It makes it Google’s single largest investment in Europe to date.

It is estimated that during the initial construction phase in 2027 and 2028, over 37,000 jobs nationwide will be supported and will contribute €3.6 billion ($4.2 billion) annually to Finland’s GDP. Once fully operational, the new facilities will support thousands of permanent jobs, ranging from engineers, to security, and catering staff. In addition, Google will sign a 22-year agreement to support the life extension of the Loviisa nuclear power plant, adding new onshore wind capacity, and contracting for a new 94-megawatt battery system to help stabilise prices during cold, windless periods.

Google has also stated that it will invest €31 million ($36 million) into local communities in Hamina, Kajaani, Muhos, and Vaala within Finland over the next four years. This money will be used to support education and economic growth, including teaming up with local colleges to offer AI upskilling programs for more than 4,400 workers and creating new training opportunities for 100 Finnish students for future data centre careers.

The energy demands of the AI era

The investment in data centre energy provision reflects the growing scale of infrastructure required to support AI development, a trend that has drawn increasing scrutiny over the environmental footprint of large technology firms.

Concerns persist around soaring energy needs and water requirements. The IEA previously reported that growth in the use of artificial intelligence will lead to global electricity demand from data centres more than doubling over the next five years, reaching 945 terawatt-hours (TWh) in 2030. Notably this figure is equivalent to Japan’s current annual electricity usage and represents an almost 128% increase from the 415 TWh of power used by data centres in 2024[i]. The IEA has credited AI as "the most significant driver of this increase, with electricity demand from AI-optimised data centres projected to more than quadruple by 2030".[ii]

Data centres have also faced scrutiny over water use, with many facilities relying on potable water for cooling. The research paper “Making AI Less ‘Thirsty’: Uncovering and Addressing the Secret Water Footprint of AI Models” released in October 2023, found that globally, AI has the potential to account for between 4.2 billion - 6.6 billion cubic meters of water withdrawal by 2027. This is equivalent to roughly half of the UK's annual freshwater withdrawals[iii].

Data-centre expansion remains the most visible aspect of AI's environmental footprint. Big tech in particular has received criticism for its part in the rapid roll-out of data centres. The ‘big three’, Microsoft, Amazon, and Google have seen their emissions rise collectively by almost a fifth in the past year, with the bulk of this growth attributable to data centre build-out.

References

[i] Data centre energy requirements to double in the next 5 years, as AI demands soar

[ii] Executive summary – Energy and AI – Analysis - IEA

[iii] 2304.03271 (arxiv.org)

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