Meta Invests Billions in Nuclear Energy, Securing Power for AI Expansion

In a significant move highlighting the growing energy demands of the AI industry, Meta has committed billions of dollars to ensure the continued operation of a nuclear power plant in Illinois. The social media giant announced on Tuesday a deal with Constellation Energy to purchase all “clean energy attributes” from the Clinton Clean Energy Center, a 1.1-gigawatt nuclear facility, starting in June 2027. This investment underscores the increasing reliance of tech companies on nuclear energy to power their expanding data center infrastructure and AI initiatives.

While the electricity generated by the Clinton plant will continue to flow into the local grid, Meta’s investment serves as a carbon accounting strategy to mitigate its overall climate impact. Although it doesn’t directly reduce grid emissions, the deal aims to prevent potential increases, aligning with Meta’s sustainability goals.

The financial details of the agreement remain undisclosed, but the multi-billion dollar commitment is expected to facilitate the relicensing of the Clinton plant, guaranteeing a stable customer base for Constellation throughout the license extension period. This deal highlights a broader trend of Big Tech companies, including Meta, actively supporting the nuclear energy sector. The surge in AI and cloud computing demands has driven tech companies to seek reliable and substantial power sources, leading to increased investment in nuclear energy startups and existing facilities.

Both Meta and Constellation have emphasized the deal’s role in preventing the potential shutdown of the Clinton power plant, although they have not stated it was at immediate risk. The plant had previously faced challenges due to competition from cheap natural gas, nearly leading to its closure in June 2017. Illinois legislators intervened with subsidies to keep the plant operational; however, these subsidies are set to expire in 2027. The agreement with Meta is intended to ensure the plant’s long-term viability without relying on ratepayer support.

Constellation had announced plans in 2022 to seek an extension of the reactor’s operating license through 2047.

The deal with Meta is described in a press release as one that “essentially replaces the ZEC [zero-emission credit] program and ensures long-term operations of the plant without ratepayer support.”

Meta’s increased interest in nuclear energy extends beyond this deal. Earlier this year, the company solicited proposals for new nuclear power plants capable of generating between 1 and 4 gigawatts of power and has received over 50 qualified submissions for sites in more than 20 states.

This agreement follows a similar move by Microsoft, which partnered with Constellation to power AI initiatives, by restarting a reactor at Three Mile Island.