Meta Will Buy Nuclear Power From Constellation Energy

Watch Meta Will Buy Nuclear Power From Constellation Energy - Bloomberg on Dailymotion

Transcript

00:00Let's start with the logic of this deal here. This is a 20-year contract. It starts in mid-2027.

00:06So clearly, Meta plans to use this power for quite a long time.

00:10Oh, yes. We're seeing so much demand for energy from all the big technology companies.

00:15They've got data centers that need more power than ever before, and they're building so many.

00:20The demand for electricity in the U.S. has pretty much been flat for decades.

00:25And then all of a sudden, about a year ago, it really started to jump.

00:28So this has caught the energy industry kind of flat-footed because it takes a long time to build power plants.

00:34They're big facilities.

00:37So for Meta, this is like a facility that exists now.

00:41So we didn't get the financial details. We don't know how much they're paying, right?

00:46No, and don't think I didn't ask Joe Dominguez, the CEO of Consolation.

00:49I'm guessing you can kind of ballpark it from the Microsoft deal.

00:53But my other question, aside from how much, is does this push Consolation to open up another reactor there?

01:01They're talking about it, and that's really significant because we haven't had a new nuclear power plant in the U.S. in a long time.

01:09We had the Vogel plant that was finished last year, and it was like seven years late.

01:13It was billions of dollars over budget.

01:16And I went down there for the grand opening, and there were all these people saying, let's do another one.

01:20You know who wasn't saying that?

01:21Southern, the company that lost a ton of money trying to build it because nobody wants to be on the hook for the costs.

01:27So what I've been hearing ever since then is we'd love to build a nuclear power plant.

01:31If someone else will make sure that they'll pay for it, tech companies have big money.