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The GSA’s $840 million, 10-year energy contract with Constellation secures 10 million megawatt-hours of electricity, with 4 million megawatt-hours from nuclear power, marking the largest energy procurement in its history.
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This deal enables Constellation to extend nuclear plant licenses, invest in new technologies, and add 135 megawatts of capacity while supporting 13 federal agencies and ensuring stable, affordable electricity prices amidst rising energy demand.
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The agreement highlights the growing role of nuclear energy in the U.S. clean energy transition, aligning with federal sustainability goals and private-sector investments from companies like Microsoft, Google, and Meta.
The General Services Administration (GSA), responsible for managing federal government buildings, has announced its largest energy procurement contract to date, signaling a significant shift in energy strategy. The $840 million, 10-year agreement secures 10 million megawatt-hours of electricity, with approximately 4 million megawatt-hours coming from nuclear power. This quantity of energy is equivalent to the annual consumption of more than one million homes. Awarded to Constellation, a leading operator of nuclear power plants in the United States, the deal highlights the growing importance of nuclear energy in addressing the nation’s clean energy needs.
Constellation, which generates 10 percent of the nation’s carbon-free energy, plans to leverage this contract to extend the operational licenses of its existing nuclear facilities and invest in new technology to increase capacity. The contract also supports the addition of 135 megawatts of capacity, with 2.4 million megawatt-hours of electricity from this expansion earmarked for GSA use over the next decade. This marks a significant endorsement of nuclear power as a cornerstone of sustainable energy strategies, particularly at a time when demand is soaring due to the proliferation of AI-driven data centers.
The federal government is the largest energy consumer in the United States, making this deal a pivotal moment for the nuclear industry. For decades, nuclear energy was often sidelined in favor of other renewable sources in corporate and governmental sustainability initiatives. However, this exclusion is increasingly becoming a relic of the past. Joe Dominguez, CEO of Constellation, emphasized this transformation, stating that the agreement represents a powerful endorsement of nuclear energy as a reliable and sustainable solution. This shift also aligns with the Biden administration’s commitment to reducing reliance on fossil fuels and investing in energy sources that do not contribute to climate change.
Beyond GSA buildings, the contract extends to thirteen other federal agencies, including the Department of Veterans Affairs, the Department of Transportation, the National Park Service, and the Federal Bureau of Prisons. These agencies will benefit from the affordability and stability of fixed electricity prices over the next ten years. With increasing competition for clean energy resources driven by the rising energy demands of AI and data centers, the GSA’s approach offers a safeguard against price volatility, ensuring budgetary stability for federal operations.
Constellation’s broader energy portfolio includes nuclear, hydro, wind, and solar power, with a long-term goal of achieving 100 percent carbon-free electricity by 2040. This ambition builds on its current position, with nearly 90 percent of its energy production already free from carbon emissions. Recent initiatives, such as the plan to restart a shuttered nuclear reactor at Three Mile Island in Pennsylvania—developed in partnership with Microsoft—illustrate the company’s proactive approach to revitalizing the nuclear sector.
The Biden administration has placed nuclear energy at the heart of its clean energy transition strategy. Initiatives like the Department of Energy’s $1.52 billion loan to restart a retired nuclear plant in Michigan underscore the government’s commitment to leveraging nuclear power as a key element of a decarbonized energy grid. At the same time, corporate giants such as Google, Amazon, Meta, and Microsoft have struck major nuclear energy deals, further solidifying the role of nuclear power in meeting the dual challenges of growing energy demand and the urgent need for sustainable solutions.
The GSA’s groundbreaking contract represents a confluence of governmental policy, technological innovation, and market-driven demand, all converging to elevate nuclear energy to a central role in America’s clean energy future. It not only underscores the strategic importance of nuclear power but also sets the stage for sustained investment in this critical energy source, ensuring reliability, affordability, and sustainability for decades to come.
