Meta inks 20-year nuclear deal to power data center
The tech giant's agreement with Constellation Energy will secure an alternative source for power-hungry AI ambitions -- likely saving a once-doomed nuclear energy plant.
Listen to this article. This audio was generated by AI.
Meta Platforms has signed a 20-year nuclear energy agreement with Constellation Energy for Meta's Illinois-based data center, drawing from the Clinton Clean Energy Center.
Hyperscalers, including Meta, Microsoft, Google and Amazon, are racing to meet unprecedented enterprise AI demand spurred by the success of OpenAI's ChatGPT. In 2023, Meta disclosed that it had used 2.6 million kilowatt-hours of electricity and emitted 1,000 tons of carbon dioxide while developing its Llama large language models.
According to Statista, Meta's global power consumption soaked up more than 15 terawatt-hours in 2023, a 33% increase over the previous year. The company has a goal of using nuclear energy for up to 4 gigawatts of energy consumption in the coming years as a generative AI arms race heats up.
Meta's deal with Constellation will start in 2027 and explore other nuclear energy opportunities. It remained operational after the Illinois state government introduced a zero-emissions credit program, which is set to expire in 2027. In December, Meta sent out a nuclear energy request for proposal to meet its growing power needs. On Tuesday, the company said in a blog post that it received more than 50 submissions from nuclear energy operators across more than 20 states.
"Through these projects, we aim to activate investment in new nuclear across multiple grids and technologies, seeding new reliable firm power to support future data centers," according to the blog post. "Our investments in nuclear energy ensure that we will have the robust energy infrastructure needed to power the AI innovations that are set to spark economic growth and prepare our communities for the future."
The Clinton Clean Energy Center was slated to close in 2017, after years of financial losses. Constellation said Meta's deal will ensure long-term operations at the plant without ratepayer support. "[Meta] figured out that supporting the relicensing and expansion of existing plants is just as impactful as finding new sources of energy," Joe Dominguez, president and CEO of Constellation, said in a statement.
Meta said such deals are crucial to its future. It has already invested more than $1 billion into its DeKalb Data Center in Illinois, which broke ground in 2020.
"Securing clean, reliable energy is necessary to continue advancing our AI ambitions," Urvi Parekh, Meta's head of global energy, said in a statement. Details of the Constellation deal were not disclosed.
Google has also unveiled plans to fund three new nuclear projects to meet compute needs. Last year, Microsoft announced a plan to reopen Pennsylvania's Three Mile Island nuclear power plant -- also owned by Constellation Energy -- to meet its growing AI needs, and Amazon is eyeing small modular nuclear reactors.
While Meta is making strides on its renewable energy commitment, it cannot seem to shake carbon-emitting energy entirely. The company's planned Louisiana data center -- a $10 billion project that will be Meta's largest data center -- will construct three natural gas turbines along with renewable energy sources.
What the nuclear deal means for IT leaders
CIOs are under pressure to quickly adopt AI, while keeping costs and sustainability in mind. AI demand could have companies -- both hyperscalers and enterprises -- investing $5.2 trillion into data centers by 2030, according to a McKinsey report.
Meta said its deal with Constellation will allow for 1,121 megawatts of emissions-free energy, reducing its environmental footprint. That could be a win for CIOs who have to show gains both in AI adoption and sustainability efforts.
Meta has found a creative way to get enough energy for this data center without having to worry about building a new power plant.
Bob JohnsonAnalyst, Gartner
Bob Johnson, a vice president and analyst at Gartner, said the environmental advantages are a plus, but the real advantage is new energy availability during a spike in demand.
"There isn't enough power to run all the data centers people need for AI," he said in an interview with Informa TechTarget. "Meta has found a creative way to get enough energy for this data center without having to worry about building a new power plant."
Johnson said finding alternative energy sources is a matter of meeting demand. "The best way to get power right now is through natural gas," he said. "Desirability for data centers right now depends on how close you are to a natural gas line."
He added that data center demand is overwhelming now because of the current state of AI training. In the future, the energy needs might decrease. "The question is: What will AI use end up looking like? Smaller models would imply smaller data centers. We'll see."
For now, AI adopters are facing a power crunch.
"We may be unable to keep up with power for the next decade or two," Johnson said.
Pradeep Sanyal, AI and data leader at IT consultancy Capgemini and a former CIO, said IT leaders should keep a close eye on energy moves by hyperscalers.
"It's tempting to dismiss Meta's nuclear deal as overkill for regular CIOs," Sanyal said in an email interview. "But AI's energy profile is already reshaping infrastructure economics faster than most expect. Even if you're not running massive AI clusters, your cloud vendors are. Rising energy demand means high costs, tighter [service-level agreements], and more scrutiny on where your compute power actually comes from."
He added, "The key is intent. Whether you act now or later, energy strategy is becoming part of IT strategy. Meta's deal is a signal. The real question is not whether to follow, but when it stops being optional."
Shane Snider, a veteran journalist with more than 20 years of experience, covers IT infrastructure at Informa TechTarget.
