Amazon secures nuclear power for 20 years through a multi-million-dollar commercial agreement to power its data centers

Amazon announced on Wednesday that it had signed a 20-year commercial agreement with Constellation Energy to secure a supply of nuclear power and support more than $3 billion in investments in electrical infrastructure.

The agreement calls for the purchase of 690 megawatts from the Calvert Cliffs clean energy plant in Maryland, plus a planned expansion of about 190 megawatts that will come online between 2030 and 2032.

In addition to this long-term commitment, Amazon has signed a retail electricity supply contract to power its operations in the PJM regional market, an energy grid spanning 13 states.

The partnership allows the company to optimize and manage its operational electricity costs amid rapidly rising demand for computing capacity for data centers and artificial intelligence infrastructure.

Private investment for grid sustainability

Unlike direct-connection models, where electricity is supplied exclusively to a corporate facility, the energy generated at Calvert Cliffs will continue to flow directly into the PJM regional grid, strengthening the electric system's stability for millions of users.

Furthermore, the financial certainty provided by the multinational company will allow Constellation to pursue extensions of the operating licenses for the plant's two reactors for an additional two decades, beyond their current expiration dates of 2034 and 2036.

"This agreement demonstrates how private investment can strengthen critical energy infrastructure," Joe Dominguez, president and CEO of Constellation, said.

"Amazon's commitment supports the long-term operation of Calvert Cliffs for generations to come and creates a solid foundation for future investments in both the facility and advanced nuclear technologies."

Calvert Cliffs is Maryland's only nuclear power plant and has a generating capacity of up to 1,790 megawatts, enough energy to power the equivalent of more than 1.3 million homes, in addition to supporting more than 800 direct jobs in the region.

Strategic commitment to modular reactors and continuous power generation

The venture in Maryland is part of Amazon's global strategy to consolidate sources of continuous electricity generation capable of supporting massive data processing.

The company has already invested $500 million in advanced nuclear technology developer X-energy and has agreements with Energy Northwest to develop small modular reactors in Washington State.

"Amazon is committed to investing in carbon-free energy to strengthen the grid and benefit the communities where we operate," Kerry Person, vice president of Global Operations and Data Center Delivery at AWS, said.

"This long-term agreement with Constellation supports the continued operation and expansion of Maryland's leading carbon-free energy source, sustains hundreds of jobs, and adds significant new generation capacity to the regional grid."

With this step, the private sector reaffirms its leading role in modernizing the national power grid, driving high-tech, free-market solutions to meet growing energy demand without compromising industrial competitiveness.