The General Services Administration (GSA), which manages government buildings, has just announced a major nuclear power contract. The announcement comes after several big tech companies struck a flurry of nuclear energy deals last year.
The 10-year, $840 million contract is for 10 million megawatt-hours of electricity, which GSA says is equivalent to the electricity needed by more than 1 million homes annually. The agency awarded the contract to Constellation, which operates the nation's largest nuclear fleet, and recently announced a deal with Microsoft to restart the nuclear reactor at Three Mile Island. Nuclear power is a significant part of the GSA deal, about 4 million megawatt-hours, according to Constellation spokesman Paul Adams.,
Silicon Valley is growing rapidly turning to nuclear energy to satisfy increasing demand for electricity From AI data centers. The federal government is the nation's largest energy consumer, making the contract a huge boon for the nuclear industry.
“This settlement is another powerful example of how things have changed.”
“Disappointingly… nuclear energy was left out of many corporate and government sustainable energy procurements. Not anymore. This agreement is another powerful example of how things have changed,” Joe Dominguez, Constellation Chairman and CEO, said in a Press release“The United States Government joins Microsoft and other entities to support continued investment in reliable nuclear power that will allow the constellation to re-license and extend the life of these critical assets.”
Constellation says it generates 10 percent of the country's carbon pollution-free energy. A Most of its production is nuclear power.But it also produces water, wind and solar energy. It also generates electricity from gas-fired power plants, although the company aims to reach 100 percent carbon-free electricity by 2040, up from about 90 percent today.
Constellation and GSA declined to answer questions about how much of the electricity included in the contract will come from each source other than nuclear power plants., Overall, this is the largest energy procurement contract signed by GSA in its history.
“This historic purchase ensures a cost-competitive, reliable supply of nuclear power,” GSA Administrator Robin Carnahan said in a statement. Press release“We are demonstrating how the federal government can join with major corporate clean energy buyers to promote new nuclear power capacity and ensure a reliable, affordable supply of clean energy for all.”
The contract will allow Constellation to extend licenses for existing nuclear power plants as well as “invest in new equipment and technology”, which should result in an additional 135 MW of capacity. GSA agreed to buy 2.4 million megawatt-hours of power from that excess capacity over 10 years. In addition to GSA buildings, the deal also extends to 13 other agencies, including the Departments of Veterans Affairs and Transportation as well as the Federal Bureau of Prisons, National Park Service, Social Security Administration and the U.S. Mint.
GSA is preparing The contract is intended as a way to lock in more affordable prices as data centers increase demand for electricity and increase competition for limited clean energy sources:
For example, in the face of uncertainty over future electricity prices and increasing electricity demand from data centers and AI facilities, this contract provides federal agencies with budgetary stability and protection against future price changes by keeping their electricity costs stable for 10 years. Provides surge protection, as well as sustainment. Promotion of domestic nuclear industry.
Google, meta, AmazonAnd Microsoft All have struck spectacular nuclear power deals in the last year. Last September, Microsoft and Constellation announced Plan to restart a decommissioned reactor at Three Mile Island in Pennsylvania worst nuclear power accident in American history.
The Biden administration has also made nuclear power a key part of its plan to transition the US away from fossil fuels to energy sources that do not cause climate change. Last October, the Department of Energy Announced $1.52 billion loan To help restart a retired nuclear generating station in Covert Township, Michigan. Meanwhile, newly elected President Donald Trump plan to undo progress Made toward clean energy, the Trump campaign's agenda included efforts “support nuclear power generation,