Constellation, Vistra, PSEG may grab nuclear data center supply deals, S&P says

Rising energy prices have created opportunities for nuclear operators to serve nearby data centers, S&P Global Ratings said in an analysis published Tuesday on UtilityDive.com, referring to Constellation Energy.Nasdaq: CEG), Scenery (New York Stock Exchange: FST) and public service Group of institutions (link) as companies Ready to take advantage.

Tallinn Energy The last deal Standard & Poor's said Amazon Web Services may provide a model for such opportunities; Talen built a data center near the Susquehanna nuclear plant in Pennsylvania and then sold the facility to Amazon, along with a 10-year power supply contract.

S&P cited Constellation (CEG), Vistra (VST) and PSEG Power (PEG) as potential candidates to repeat the arrangement with their dual unit positions, according to UtilityDive.com.

Constellation (CEG) is considering building advanced reactors at existing plants to power data centers, Vistra (VST) is said to be in talks with data center operators in Texas and Ohio, and PSEG (PEG) said it is in talks to provide data centers with capacity from the Hope Creek and Salem power plants. Nuclear in New Jersey.

While the nature of the joint data center supply deal may change — S&P said data centers backed by gas generation may be under consideration in Texas — “we would be surprised if no transactions are announced in 2024,” the company said.