Nuclear power giant catches tech giants attention with multi-billion deals
Americas biggest nuclear power operator is making deals with tech companies for their data-centers. Recent regulatory issues made its stock price drop but growth outlook remains strong
Electric utilities arent just dividend stocks anymore - theyʼre becoming tech-sector partners in the clean-energy revolution. The growing need for electricity (specially for artificial intelligence) has created new profit paths for power companies
Nuclear power fits perfectly with tech companies needs: its clean reliable and long-lasting. Constellation Energy‚ which runs Americas largest nuclear fleet with 22 gigawatts capacity; has caught big-techs attention. The companys stock has grown two-times this year‚ showing strong market confidence
The company got top ratings from investment trackers and currently has 16 of worlds best fund managers as investors. Their nuclear stations will keep working long after current wind-solar farms are done; which makes them extra-valuable for long-term planning
Constellation recently signed a deal with Microsoft for their Three Mile Island reactor in Pennsylvania: a 20-year power supply agreement that needs about $1‚6bn investment. However similar deals got blocked by regulators who worry about grid stability and consumer prices which made companys stock drop from $285 to $228 since early-fall
The companys base earnings grow around 10% yearly but special projects like data-centers could push growth higher. Microsoft wants to build a 5GW data-center (which shows how big these projects can be). With stock price at $224 and price-earnings ratio at 25; the current dip might be good for new investors to join in
