US DOE Loans $5B to Constellation Energy for Nuclear Reactor Upgrades Powering Major Tech Data Centers

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Constellation Energy receives $5 billion government loan to expand nuclear reactor capacity, mostly powering Google, Amazon, and Meta's data centers. The upgrade plans aim to add 1.1 GW across eight plants, lowering financing costs amid rising energy demand by hyperscale AI infrastructure.

The U.S. Department of Energy (DOE) under the Trump administration is providing Constellation Energy with a $5 billion loan to support expanding nuclear power capacity at eight existing plants, totaling an increase of 1.1 gigawatts. Constellation plans to ‘‘uprate’’ 11 reactors—an industry term referring to capacity expansions facilitated by using higher enriched uranium and upgraded equipment.

These expansions are primarily intended to supply energy to major hyperscale technology companies. Google, Amazon, and Meta have already secured most or all of the additional electricity expected from seven of the plants involved. Specifically, Google is the confirmed buyer from one plant in Pennsylvania (Limerick) and four plants in Illinois (Braidwood, Byron, Dresden, and LaSalle). Amazon has purchased power from the Maryland plant (Calvert Cliffs), while Meta effectively acquires output from the Clinton plant in Illinois.

Constellation has committed over $7 billion in capital investment to add 1,080 megawatts of nuclear generation capacity targeted to these tech giants’ substantial data center energy demands. The $5 billion DOE loan is intended to reduce Constellation’s financing costs for the projects, potentially improving financial outcomes for the utility and the tech companies alike.

The DOE presented the loan as fostering ‘‘affordable, reliable power to American homes and businesses.’’ However, there is no clear evidence that the new nuclear capacity will reduce residential electricity rates, and Constellation did not confirm any impact on pricing to TechCrunch.

Hyperscale cloud providers and AI infrastructure operators increasingly prioritize secure, large-scale, and carbon-free power sources to meet surging electricity needs. Their multibillion-dollar commitments are driving energy procurement strategies, with nuclear power upgrades now playing a key role.

The eight nuclear plants receiving upgrade funding include six in Illinois, one in Maryland, and one in Pennsylvania, demonstrating a regional focus in the Midwest and Mid-Atlantic. The DOE’s financial support highlights government backing for nuclear energy as a stable energy source underpinning critical technology infrastructure in the coming decade.

This development marks an important collaboration between government energy programs, nuclear utilities, and major technology firms aiming to secure dependable, low-carbon power to sustain the massive growth of data center operations, especially those servicing artificial intelligence workloads.