Constellation eyes new data center opportunities
A regulatory decision won’t stop Constellation’s plans to co-locate data centers at power plants.
Constellation Energy remains committed to establishing data centers at its US power plants despite a recent regulatory challenge. Last week, the Federal Energy Regulatory Commission (FERC) blocked a deal to expand power capacity for an Amazon data centre connected to a Talen Energy nuclear facility, a decision seen as discouraging similar co-location projects. Despite this, Constellation aims to advance its vision, particularly for AI-driven facilities seeking quick, large-scale power access.
Company CEO Joseph Dominguez expressed that Constellation will continue pursuing commercial co-location strategies permitted within existing regulations while seeking further guidance from FERC. Dominguez suggested future data centers could draw directly from nuclear power and, in times of grid emergencies, redirect electricity back to the network, highlighting potential safeguards for grid reliability and regional power stability.
FERC’s decision arose partly from concerns raised by other energy providers, who argued that the Talen-Amazon arrangement risked inflating energy prices for regular consumers and straining the grid. Specifically, Talen’s proposed data center campus could have supplied 960 megawatts—enough for a city the size of Philadelphia—but FERC limited it to 300 megawatts, citing grid impact concerns.
Constellation, largest nuclear operator in the US, had supported Talen in the regulatory process, underscoring the potential for data centers to meet surging digital demand. Although Constellation’s stock dropped following FERC’s ruling, the company is exploring alternative pathways with stakeholders to move its data center plans forward efficiently.