The General Services Administration (GSA) has just announced a significant nuclear energy contract, marking a major development in the industry. This announcement comes on the heels of several prominent tech companies making notable nuclear energy deals last year.
A New Era for Nuclear Energy
The 10-year, $840 million contract is for 10 million megawatt-hours of electricity, which is equivalent to what’s needed for over 1 million homes annually. The agency awarded the contract to Constellation, which operates the nation’s largest nuclear fleet and has recently announced an agreement with Microsoft to restart a nuclear reactor at Three Mile Island.
The Role of Nuclear Energy in the GSA Deal
According to Constellation spokesperson Paul Adams, nuclear energy makes up approximately 4 million megawatt-hours of the GSA deal. This significant portion of the contract highlights the growing importance of nuclear energy as a reliable source of clean power.
Silicon Valley’s Shift Towards Nuclear Energy
Silicon Valley is increasingly turning to nuclear energy to meet the electricity demands from AI data centers, which are driving up demand for clean energy sources. As the nation’s single largest energy consumer, the federal government’s commitment to nuclear energy through this contract is a major boon to the industry.
Constellation’s Commitment to Nuclear Energy
Constellation president and CEO Joe Dominguez stated in a press release, "This agreement is another powerful example of how things have changed. Frustratingly, nuclear energy was excluded from many corporate and government sustainable energy procurements. Not anymore."
Constellation’s Diversified Energy Portfolio
Constellation generates 10 percent of the nation’s carbon pollution-free energy. While a majority of its output comes from nuclear energy, the company also produces hydro, wind, and solar power. Additionally, it generates electricity from gas-fired power plants, with a goal of reaching 100 percent carbon-free electricity by 2040.
The Contract’s Implications
The contract will allow Constellation to extend licenses for existing nuclear power plants as well as invest in new equipment and technology that should result in 135 megawatts of additional capacity. The GSA agreed to purchase 2.4 million megawatt-hours of electricity from this added capacity over 10 years.
Broader Implications of the Contract
The contract extends beyond GSA buildings, also applying to 13 other agencies, including the departments of Veterans Affairs and Transportation as well as the Federal Bureau of Prisons, the National Park Service, the Social Security Administration, and the US Mint. The GSA is framing this contract as a way to lock in more affordable prices as data centers drive up electricity demand and increase competition for limited clean energy sources.
Why This Contract Matters
In the face of uncertainty over future electricity prices
