Key Takeaways
- Constellation Energy shares jumped Wednesday after the company said it received a federal loan of up to $1 billion to restart a nuclear reactor at Three Mile Island in Pennsylvania.
- Shares of Constellation and other nuclear energy companies have seen their stocks soar this year, amid anticipation of growing demand to power AI and support from the Trump administration.
Constellation Energy (CEG) shares surged Wednesday after the power provider said it won a federal loan of up to $1 billion to restart a nuclear reactor at Pennsylvania’s Three Mile Island.
The shares were up over 5% in recent trading, bringing their year-to-date gains close to 60%. (Read our daily markets coverage here.)
CEO Joe Dominguez praised the government’s quick decision on the loan, calling it “another huge step towards bringing hundreds of megawatts of reliable nuclear power onto the grid at this critical moment.”
Shares of Constellation and a number of other nuclear energy companies, such as Vistra (VST) and Oklo (OKLO), have seen their stocks surge this year amid anticipation of growing demand to power AI data centers, along with support from President Trump, who signed several executive orders in recent months meant to boost the industry. Shares of Vistra are up about 30% for 2025, while Oklo shares have nearly quintupled in value.
Why This News Matters
AI data centers are driving up demand for power, pushing tech firms like Microsoft to lock in long-term nuclear energy supplies. Federal policymakers are also stepping up support for nuclear projects. Reviving Three Mile Island’s Unit 1 marks a return to nuclear generation at the historically significant site.
The loan for Constellation comes after the company struck a 20-year agreement in September with Microsoft (MSFT) to provide electricity for the tech giant’s AI data centers.
In a regulatory filing, Constellation said it would be using the loan to bring back Unit 1 of Three Mile Island, which was shuttered five years ago. Unit 2, which had a partial meltdown in 1979 that led to major changes in the U.S. nuclear energy industry, remains inactive. Constellation has said that Unit 2 is owned by another firm and is being decommissioned.