The US government has signed a massive nuclear energy deal, marking a significant move to secure reliable power for federal agencies while meeting growing electricity demands.
The General Services Administration (GSA), which manages government buildings, announced a 10-year, $840 million contract with Constellation, the country’s largest nuclear energy provider. The deal guarantees 10 million megawatt-hours of electricity, with nuclear power contributing nearly 4 million megawatt-hours—enough to power over one million homes each year.
The agreement comes at a time when Silicon Valley companies like Google, Microsoft, and Meta are also turning to nuclear energy to power their energy-hungry data centers. The federal government, as the largest energy consumer in the US, is positioning itself alongside tech giants in championing nuclear energy as a clean and dependable source. The GSA framed the contract as a way to stabilize electricity costs and avoid price spikes caused by the growing competition for clean energy.
“This historic procurement locks in a cost-competitive, reliable supply of nuclear energy,” said GSA Administrator Robin Carnahan in a press release. She emphasized how the deal demonstrates the federal government’s ability to support clean energy while addressing budgetary concerns.
The Growing Role of Nuclear Energy
Joe Dominguez, Constellation’s CEO, highlighted the shift in nuclear energy’s role, stating that it had often been overlooked in corporate and government energy strategies. He called the deal a “powerful example” of renewed interest in nuclear power. The contract enables Constellation to extend licenses for existing nuclear plants, invest in new technology, and increase capacity by 135 megawatts.
This isn’t the first big nuclear energy play for Constellation. The company recently partnered with Microsoft to restart a shuttered reactor at Pennsylvania’s Three Mile Island, a site infamous for the worst nuclear accident in US history. Dominguez pointed out that deals like these are crucial for supporting the longevity of nuclear facilities, which provide 10 percent of the nation’s carbon-free electricity.
The GSA’s agreement spans more than its own buildings, covering 13 federal agencies, including the Departments of Veterans Affairs and Transportation, the National Park Service, and the Social Security Administration. By fixing energy prices for a decade, the contract shields these agencies from market fluctuations while ensuring a steady supply of power.
The Biden administration has made nuclear energy a key part of its strategy to transition away from fossil fuels. Recent federal initiatives include a $1.52 billion loan to restart a nuclear plant in Michigan, reflecting the government’s commitment to reducing carbon emissions. As energy demands from AI facilities and data centers continue to climb, deals like this one highlight nuclear power’s potential to play a central role in a cleaner, more reliable energy future.
