The US government has taken a significant step towards reducing its carbon footprint by announcing a historic $840 million nuclear energy deal. The 10-year contract, awarded to Constellation, will provide 10 million megawatt-hours of electricity, equivalent to powering over 1 million homes annually. This move comes on the heels of similar deals made by tech giants, such as Microsoft, Google, Meta, and Amazon, to satiate their rising electricity demand from data centers.

The contract, facilitated by the General Services Administration (GSA), marks a significant shift in the government's approach to sustainable energy procurement. Constellation, which operates the nation's largest nuclear fleet, will provide approximately 4 million megawatt-hours of nuclear energy, making up a substantial portion of the total contract. This deal is a major boon to the nuclear industry, as the federal government is the nation's single largest energy consumer.

Constellation president and CEO, Joe Dominguez, hailed the agreement as a "powerful example of how things have changed" in the industry. The company generates 10% of the nation's carbon pollution-free energy, with a majority of its output coming from nuclear power plants. Constellation has set a goal of reaching 100% carbon-free electricity by 2040, up from its current 90%.

The contract will enable Constellation to extend licenses for existing nuclear power plants and invest in new equipment and technology, resulting in an additional 135 megawatts of capacity. The GSA has agreed to purchase 2.4 million megawatt-hours of electricity from this added capacity over the 10-year period. The deal extends beyond GSA buildings, covering 13 other agencies, including the Departments of Veterans Affairs and Transportation, as well as the Federal Bureau of Prisons and the US Mint.

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. By fixing electricity costs for 10 years, federal agencies can better budget and protect themselves from future price increases. This move is seen as a strategic step towards ensuring a reliable and affordable supply of clean energy.

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. This latest deal reinforces the administration's commitment to supporting the domestic nuclear industry and reducing the country's carbon footprint.

In the context of the tech industry, this deal is significant, as it follows similar nuclear energy agreements made by major tech companies. Microsoft, in particular, has been at the forefront of this trend, having announced a plan to restart a shuttered reactor at Three Mile Island in Pennsylvania, the site of the worst nuclear energy accident in US history.

As the world continues to grapple with the challenges of climate change, this historic deal serves as a testament to the growing recognition of nuclear energy as a vital component of a sustainable energy mix. With the US government and tech giants leading the charge, the nuclear industry is poised for significant growth and investment in the years to come.