Meta’s 20-Year 1,121 MW Clean Energy Contract Starts Mid-2027
In June last year, Meta Platforms signed a landmark 20-year agreement with Constellation Energy to purchase clean nuclear power from the Clinton Clean Energy Center in Illinois. The deal covers approximately 1,121 megawatts of nuclear-generated electricity and represents Constellation’s largest committed AI-sector energy supply to date. This contract surpasses another recent agreement with Microsoft, which involves around 835 megawatts linked to the planned restart of units at the Three Mile Island nuclear plant.
Significantly, the Meta contract does not commence until June 2027—nine months from now—meaning Constellation’s latest quarterly results and forward guidance do not yet include any revenue contribution from this deal.
Clinton Nuclear Plant License Extension and Capacity Boost
This agreement supports Meta’s commitment to source 100% of its power consumption from clean energy. The Clinton nuclear facility continues to deliver electricity to the Illinois grid, with regulatory approval secured for license renewal through December 2047. Planned equipment upgrades aim to increase the plant’s capacity by 30 megawatts.
Currently, the plant’s operations benefit from Illinois’ Zero Emission Credit (ZEC) program funding, which expires in June 2027. The timing of Meta’s contract aligns precisely with the ZEC program’s sunset, effectively transitioning the electricity payment responsibility while maintaining existing operational funding.
Expansion of Nuclear Power Deals: Microsoft and New Contracts
Meta’s contract is part of a broader pipeline of long-term nuclear power sales at Constellation Energy. The company’s 20-year deal with Microsoft will activate alongside the planned restart of the Three Mile Island units, targeting a 2027 timeline. Regulators have approved the transfer of grid interconnection rights from retiring Pennsylvania coal plants to this nuclear project and modified fuel licenses to support the nuclear restart.
Additionally, Constellation disclosed in its Q2 earnings a total of 920 megawatts in new long-term nuclear contracts with investment-grade clients. These contracts, spanning 15-20 years, have start dates between 2029 and 2032. Notably, a 176-megawatt deal signed with Walmart supports a 30-megawatt capacity addition at the Dresden nuclear plant in Illinois.
The phase-in of contracted nuclear power deliveries is set to begin in 2027 with Meta’s agreement, followed by the Three Mile Island restart and subsequent new contracts starting in 2029. None of these contracts have impacted current-year earnings yet.
Earnings Growth in 2026 Driven by Acquisitions, Not AI Contracts
For Q2 2026, Constellation reported non-GAAP adjusted operating EPS of $2.55, marking a 34% increase from $1.91 a year earlier. This growth largely reflects the January acquisition of Calpine, a natural gas and geothermal generation company, along with favorable market and asset performance, partially offset by nuclear plant outages. The company raised its full-year EPS guidance to a range of $11.50 to $12.50, with a midpoint about 28% higher than 2025’s $9.39.
This indicates that Constellation’s near-term profit expansion stems from existing and acquired operations rather than the AI-related contracts, which commence beyond the current fiscal year. Based on fiscal 2026 guidance midpoints, the stock values at roughly 25 times forward earnings, reflecting premium pricing supported by anticipated steady contracted revenues.
Operational and Market Risks Remain
While long-term contracts are in place, the company faces ongoing operational challenges linked to the timely restart of nuclear units, maintenance scheduling, and regulatory requirements. The precise start dates of contracts cannot be advanced, calling for investor caution regarding the timing of revenue realization.
In summary, Constellation Energy leads peers with substantial AI-linked clean energy contracts, anchored by the upcoming Meta deal beginning June 2027. Meanwhile, its current financial momentum is underpinned by traditional and recently acquired assets, positioning it for steady growth as new contract revenues phase in over the coming years.