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Constellation Energy to Pursue New Nuclear Power for Data Centers

Constellation Energy Corporation, the biggest nuclear power operator in the United States, is exploring the possibility of constructing new nuclear capacity at its existing reactor sites to meet the growing demand from data center customers. 

Power Surge: Meeting Data Centers’ Demand

Amid the generative artificial intelligence (AI) gold rush, renewed discussions about longstanding power sources for data centers have emerged. 

McKinsey’s recent forecast predicts a significant surge in data center power consumption in the U.S., from 17 gigawatts (GW) in 2022 to 35 GW in 2030. This growth is attributed in part to the increasing use of higher-power chips for demanding workloads such as AI. 

US data center demand 2030

The rise in power consumption per rack, from 10 kilowatts to over 60 kilowatts, has led to a doubling of overall campus capacity from 50 megawatts to over 100 megawatts over the past 5 years.

Notably, certain data center hubs like Ashburn in Northern Virginia have reached their power capacity limits. They are no longer able to accommodate requests for additional capacity. Market experts highlighted that power is the industry’s biggest challenge. 

Data centers are notorious energy consumers, with a single hyperscaler’s data center consuming as much power as 80,000 households. This has put huge pressure on the industry to adopt sustainable practices, leading to the imposition of sustainability standards by regulators and governments on newly constructed data centers. 

For investors, this presents opportunities to support data centers in securing low-carbon energy supplies. And this is where nuclear power could play a role. 

Constellation Energy CEO Joseph Dominguez mentioned considering small modular reactors (SMRs) or other technologies and expressed interest in a multi-tiered structure with tech companies like Microsoft and Google to fund site development and construction.

The partnership aims to accelerate the development of various projects by developing new commercial structures. These include advanced nuclear, next-generation geothermal, clean hydrogen, and long-duration energy storage.

Tech Giants and Nuclear Solutions

The S&P 500 company plans to perform due diligence and achieve regulatory milestones before the electricity supply is needed. Dominguez said that they have potential projects ramping up by 2026-2028. He further added that: 

“We’re in advanced conversations with multiple clients, large — well-known companies that you all know — about powering their needs… While we’re not done yet, I do expect that we will finalize agreements that will have long-term and transformational value.”

They have customers interested in behind-the-meter capacity and are exploring options with existing assets like the Calvert Cliffs, Salem, LaSalle, Limerick, and Peach Bottom plants. 

Top hyperscalers, including Amazon‘s AWS, Microsoft, Meta, and Alphabet, continue to expand their data center presence. In March, Talen Energy sold a 960-megawatt data center campus to AWS for $650 million on its Pennsylvania nuclear facility.

Constellation Energy’s CEO remarks coincide with the company’s remarkable Q1 earnings, which surged by 858% to $2.78 per share. Despite a revenue decline of 18% to $6.16 billion, adjusted earnings grew by 133% to $1.82 per share. This beat analysts’ expected earnings per share of $1.30 and total sales of $6.62 billion.

The company’s stock is up over 80% in 2024. This year, it’s one of the best-performing stocks in the S&P 500 index, right next to Nvidia and Super Micro Computer.

The U.S.’ largest nuclear power plant operator also reiterated its full-year adjusted earnings guidance of $7.23 to $8.03 per share. The company holds a significant stake, owning 25% of U.S. nuclear power reactors.

Additionally, it serves as an energy provider to over 20% of the major commercial and industrial customers nationwide.

Nuclear’s Role in Data Center Sustainability

To meet their carbon-free energy targets, data center operators increasingly enter into power purchase agreements (PPAs) with renewable energy suppliers. Meanwhile, major cloud providers are taking proactive steps to finance the construction of renewable energy facilities due to rising prices caused by supply constraints. 

  • For instance, Amazon has backed Scottish Power’s wind farm in the UK and committed to purchasing its entire 50-megawatt output.

However, relying solely on renewables presents challenges. Solar and wind power are intermittent, often requiring fossil fuel backups. Some companies explore “24/7” PPAs, combining carbon-free sources with stored renewable energy, but at a higher cost due to expensive storage technologies. 

While lithium-ion batteries are a developed backup solution, they can be costly over time. Emerging long-duration storage options like hydrogen and green ammonia energy could reduce costs but are still in the early stages.

Nuclear power offers a solution, providing reliable baseload power traditionally supplied by fossil fuels. As the sector commits to carbon neutrality, onsite nuclear power emerges as an ideal choice, meeting the energy needs of data centers efficiently and sustainably.

According to S&P Global Commodity Insights data, the following are the best nuclear plants that could provide power for data centers.

nuclear power plants to serve datacenters demand

As data center power demands soar, Constellation Energy’s nuclear ambitions highlight the need for innovative energy solutions to support the digital revolution sustainably.

The post Constellation Energy to Pursue New Nuclear Power for Data Centers appeared first on Carbon Credits.

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The Strategic Case for Nature-Based Carbon Investments

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Nature-based carbon investments deserve consideration when they address a specific business dependency and produce outcomes you can measure. Imagine Moonbucks, a global coffee roaster planning next season’s espresso blend. It is considering natural Grade 4 coffee from Jimma, in southwestern Oromia, Ethiopia. Its sourcing decisions affect the roasting schedule and the cash tied up in coffee purchases. Moonbucks needs to understand which measures could protect that supply, what they would cost and how it would judge the results.

1. Define the sourcing problem before choosing a project

Moonbucks needs a dependable component for its espresso blend. Its procurement team wants continuity of volume and an agreed cup profile. Replacing a shipment at short notice could require new sample approval and changes to the blend, and given the schedules for cultivation, processing, and freight delivery, is practically impossible. Moonbucks needs to get this right, and its initial concern is inconsistent deliveries. It commissions an assessment of the supplying farms and post-harvest chain. The questions cover land condition, harvest availability and whether drying or storage problems are affecting saleable lots.

This distinction changes the investment brief. A tree-planting proposal cannot be assumed to fix drying problems. Better storage cannot restore eroded land. The team must establish which problem exists before selecting the response.

CCC’s guide to finding nature-based solutions in your supply chain explains where to look. Here, the next task is to turn a broad concern into a testable proposal.

2. Develop nature-based carbon investments around the actual supply chain

The assessment would trace Moonbucks’ purchases back through the exporter and supplying producer groups. Which farms supply the contracted lots? Who controls land-management decisions? How long does the buyer expect to maintain the purchasing relationship?

Furthermore, Jimma natural Grade 4 cannot be treated as interchangeable with every Ethiopian coffee. Moonbucks would need to test any substitute against its own blend and quality requirements.

Suppose Moonbucks’ assessment identifies an opportunity to maintain shade trees and restore vegetation along exposed streambanks. The IPCC describes agroforestry as a way to store carbon in vegetation and soil, with potential benefits for erosion control and water quality.1 Moonbucks would need local advice on species, growing conditions and maintenance before deciding how these measures fit its sourcing plan.

The proposal now has a defined sourcing connection and a candidate intervention. The next steps are to test its effect on production, assess carbon eligibility and build the financial case.

3. Compare the proposal with other ways to protect supply

WBCSD’s Nature-based Solutions Blueprint recommends comparing nature-based options with other responses across their benefits and costs.2 For Moonbucks, that means evaluating the landscape proposal alongside drying improvements, storage controls and alternative sourcing arrangements.

The product’s natural-process designation matters. Moonbucks should examine the drying and dry-milling chain alongside land conditions. Its team would check storage practices, contamination risks and incoming-lot quality to see whether problems arise before or after the coffee leaves the farms.

The revised proposal might combine land stewardship with separate post-harvest controls. Each component needs its own purpose and budget. A sustainability label should not obscure which activity is expected to solve which problem.

The project develops as the evidence improves. Its scope should follow the diagnosis rather than preserve the first idea unchanged.

4. Establish what the carbon outcome could count toward

Moonbucks’ sustainability team now tests the proposed carbon case separately from the sourcing case. Is the objective a measurable change in Moonbucks’ value-chain emissions, verified credits for separate voluntary use, or distinct outcomes under carefully defined arrangements?

Scope 3 covers value-chain emissions. A purchasing relationship alone does not prove that a farm intervention can be included in Moonbucks’ inventory. The team needs an applicable accounting method, defensible boundaries and evidence supporting attribution.

SBTi’s FLAG Guidance (forest, land and agriculture), version 1.2, says purchased credits used as offsets cannot meet near-term FLAG or energy and industry targets. Eligible land-based removals are subject to accounting requirements.3 Moonbucks needs to test its proposal against those rules before including an outcome in its targets.

For Moonbucks’ Jimma proposal, maintaining existing trees and establishing new vegetation could involve different carbon questions. Specialists must examine the baseline and additionality, meaning what changes because the project proceeds. They must also assess measurement and the risk that stored carbon is lost. CCC’s MRV and additionality article introduces those tests.

Until that work is complete, Moonbucks should not budget an assumed Scope 3 reduction or credit-sale receipt. Direct emissions reductions remain the priority.

5. Build a financial case that survives weaker assumptions

Moonbucks’ finance team would now build a multi-year budget. UNEP’s State of Finance for Nature 2023 compares current finance with the investment needed to meet climate, biodiversity and land-restoration goals.4 The company would cost its proposed activities, farmer participation and ongoing monitoring. Verification, where required, is a separate expense. Maintenance and responsibility for replacing failed plantings must remain visible after the initial establishment budget ends.

Operational benefits need equally careful treatment. If fewer rejected lots reduce emergency purchasing, count that saving once. Do not add “supply resilience” as another financial benefit when it represents the same avoided cost.

Moonbucks should compare a base case with slower benefits, higher implementation costs and no carbon revenue. It should also distinguish production outcomes from quality and shipment outcomes. A single good harvest would not prove that the landscape intervention caused better delivery performance.

A project can remain worth funding even when its carbon case needs more work. That decision must rest on the operational evidence and the company’s objectives, without unsupported environmental claims.

6. Fund a pilot with a clear expansion decision

Moonbucks’ first approval would fund a bounded pilot, rather than commit the entire sourcing program. Before spending, Moonbucks would agree on participating farms, responsibilities and the evidence needed at review.

Its scorecard could track farmer participation, implementation costs and plant survival, alongside accepted coffee volumes and lot-quality results. Carbon measurements would follow the selected method. Farm-level traceability must connect the intervention to the actual sourcing relationship.

Suppose Moonbucks’ review later finds that storage changes explain most quality improvements, while the land measures need longer observation. Those findings would shape the next decision: expand the proven component, adjust the landscape work or pause further spending. They would not justify crediting all improvements to tree planting.

This gives nature-based carbon investments a practical place in a multi-year strategy. Funding increases as the evidence supports it, and the project can change direction before a larger commitment.

Discuss a sourcing opportunity with CCC

Carbon Credit Capital’s nature-based supply-chain investment service uses its Dual-Value Model to examine supply-chain economics alongside potential sustainability outcomes.

Schedule a consultation to discuss your sourcing exposure and the questions to resolve before allocating capital.

Sources

  1. Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate Change, Chapter 7, Agriculture, Forestry and Other Land Uses, section 7.4.3.3 (Agroforestry).
  2. World Business Council for Sustainable Development (WBCSD), Nature-based Solutions Blueprint, 5 June 2024.
  3. Science Based Targets initiative (SBTi), Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, section 3.1.4, pp. 37–38.
  4. United Nations Environment Programme (UNEP), State of Finance for Nature 2023, 2023.
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Carbon Footprint

How to buy plastic credits, and what to check before you do

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A plastic credit funds the collection of plastic waste in places where no formal system exists to collect it. Each credit represents a measured, independently audited quantity of plastic taken out of the environment or returned to use, tracked on a public registry.

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Carbon Footprint

EU carbon credit claims after 27 September 2026

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EU carbon credit claims changed on 27 September 2026, the day the Directive (EU) 2024/825 began to apply across the European Union. The change is narrow. It changes how a company can talk about the credits it buys. A product can no longer be called neutral on the strength of compensation alone; however, every specific, evidenced statement about what a company measured, reduced, and funded stays fully available.

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