Breaking News: GSA Announces Major Nuclear Energy Contract
The General Services Administration (GSA), which manages government buildings, has made a significant announcement regarding a major nuclear energy contract. This move comes on the heels of several big tech companies making a flurry of nuclear energy deals last year.
A Record-Breaking Contract Worth $840 Million
The 10-year contract is valued at $840 million and is for 10 million megawatt-hours of electricity. According to the GSA, this amount is equivalent to what’s needed for more than 1 million homes annually. The agency awarded the contract to Constellation, which operates the nation’s largest nuclear fleet, and recently announced an agreement with Microsoft to restart a nuclear reactor at Three Mile Island.
Nuclear Energy Dominates the Contract
According to Constellation spokesperson Paul Adams, nuclear energy makes up a significant portion of the GSA deal, about 4 million megawatt-hours. This highlights the growing importance of nuclear energy in meeting electricity demand from data centers and AI facilities. The federal government is the nation’s single largest energy consumer, making this contract a big boon to the nuclear industry.
The Shift Towards Nuclear Energy
Silicon Valley is increasingly turning to nuclear energy to satiate electricity demand from AI data centers. This trend is reflected in the growing number of nuclear energy deals being made by tech companies. Google, Meta, Amazon, and Microsoft have all inked splashy nuclear energy deals over the past year.
A Powerful Example of Change
"This agreement is another powerful example of how things have changed," said Joe Dominguez, Constellation president and CEO, in a press release. "Frustratingly… nuclear energy was excluded from many corporate and government sustainable energy procurements. Not anymore. This agreement is another powerful example of how things have changed."
A Big Boost for the Nuclear Industry
The United States government joins Microsoft and other entities to support continued investment in reliable nuclear energy that will allow Constellation to relicense and extend the lives of these critical assets. Constellation generates 10 percent of the nation’s carbon pollution-free energy, with a majority of its output being nuclear energy.
A Diversified Energy Mix
Constellation also produces hydro, wind, and solar power, as well as electricity from gas-fired power plants. The company has set a goal of reaching 100 percent carbon-free electricity by 2040 compared to close to 90 percent today.
The Details of the Contract
While Constellation and the GSA declined to answer questions about how much of the electricity included in the contract will come from each source aside from nuclear power plants, it’s clear that this is a significant milestone for the nuclear industry. The contract allows Constellation to extend licenses for existing nuclear power plants as well as "invest in new equipment and technology" that should result in 135 megawatts of additional capacity.
A Reliable and Affordable Supply of Clean Energy
The GSA agreed to purchase 2.4 million megawatt-hours of electricity from the added capacity over 10 years. Outside of GSA buildings, the deal also extends to 13 other agencies, including the departments of Veterans Affairs and Transportation as well as the Federal Bureau of Prisons, the National Park Service, the Social Security Administration, and the US Mint.
Locking in Affordable Prices
The GSA is framing the contract as a way to lock in more affordable prices as data centers drive up electricity demand and increase competition for limited clean energy sources. "In the face of uncertainty over future electricity prices and increasing electricity demand from data centers and AI facilities, for instance, this contract provides federal agencies with budgetary stability and protections from future price increases by keeping their electricity costs fixed for 10 years," said GSA administrator Robin Carnahan in a press release.
A Key Part of the Biden Administration’s Plan
The Biden administration has made nuclear energy a key part of its plan to transition the US away from fossil fuels to energy sources that don’t cause climate change. Last October, the Department of Energy announced a $1.52 billion loan to help restart a retired nuclear generating station in Covert Township, Michigan.
A Growing Trend
While President-elect Donald Trump plans to undo progress made toward clean energy, the Trump campaign agenda included efforts to "support nuclear energy production." This highlights the growing recognition of the importance of nuclear energy in meeting electricity demand and reducing carbon emissions.
The Impact on the Industry
This contract will have a significant impact on the nuclear industry, providing a boost to Constellation’s operations and allowing the company to extend licenses for existing nuclear power plants. It also demonstrates the increasing importance of nuclear energy in meeting electricity demand from data centers and AI facilities.
A Reliable Supply of Clean Energy
The GSA’s contract with Constellation provides a reliable supply of clean energy, locking in affordable prices for federal agencies over the next 10 years. This is especially important as data centers drive up electricity demand and increase competition for limited clean energy sources.
A New Era for Nuclear Energy
This contract marks a new era for nuclear energy, highlighting its importance in meeting electricity demand from data centers and AI facilities. The growing recognition of nuclear energy’s role in reducing carbon emissions will only continue to grow as the industry adapts to changing demands.
The Future of Clean Energy
As the world shifts towards clean energy sources, nuclear energy is poised to play an increasingly important role. This contract demonstrates the importance of investing in reliable and affordable clean energy sources, including nuclear power plants.
A Bright Future for the Nuclear Industry
This contract provides a boost to Constellation’s operations, allowing the company to extend licenses for existing nuclear power plants and invest in new equipment and technology. It also highlights the growing recognition of nuclear energy’s role in reducing carbon emissions and meeting electricity demand from data centers and AI facilities.
A Reliable Supply of Clean Energy for Years to Come
The GSA’s contract with Constellation provides a reliable supply of clean energy, locking in affordable prices for federal agencies over the next 10 years. This is especially important as data centers drive up electricity demand and increase competition for limited clean energy sources.
Conclusion
This contract marks a significant milestone for the nuclear industry, highlighting its importance in meeting electricity demand from data centers and AI facilities. The growing recognition of nuclear energy’s role in reducing carbon emissions will only continue to grow as the industry adapts to changing demands.
