Energy 2 November 2026 1 MIN READ
AI's Next Bottleneck Isn't Chips. It's Electricity.
Google signed a 20-year deal for 890 MW of new nuclear capacity from upgraded Constellation reactors. The AI race is now an energy race.
THE SHORT ANSWER
AI's next bottleneck is electricity, not chips. On 6 October 2026, Google signed a 20-year deal for 890 MW of new nuclear capacity from upgraded Constellation reactors. A separate 15-year contract covers 2,700 MW from existing plants. Power contracts now signal where AI capacity is heading.
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What happened?
On 6 October 2026, Google and Constellation Energy announced a 20-year power purchase agreement for 890 MW of new nuclear capacity. The megawatts come from upgrading 11 existing reactors in Illinois, Pennsylvania and New Jersey, and the first uprate is expected by 2028.
Separately, the two companies signed a 15-year supply agreement for 2,700 MW from Constellation’s existing fleet. That is a different contract, and it adds no new capacity.
AI’s next bottleneck isn’t chips. It’s electricity.
Why does it matter?
Data centres need steady power around the clock. Constellation pitches uprates as a way to add capacity without the multi-year timelines of building new plants, yet even this route only starts delivering in 2028.
Our view: deals like this lock in supply years before the models that will use it exist. That makes power contracts an early signal of where AI capacity is heading.
What should you watch next?
→ Power deals, not just model launches.
→ Whether other AI companies sign long-term nuclear contracts.
The AI race is now an energy race.
Sources
- Google and Constellation Announce Landmark Agreement to Bring 890 MW of New Nuclear Capacity to PJM Grid as Part of Long-Term Power Deal · Constellation Energy · Accessed
- Google goes nuclear to power its AI data centers, committing to buy 890 megawatts of energy from Constellation · SiliconANGLE · Accessed
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