Highlights

  • Artificial intelligence workloads are projected to consume a large share of U.S. electricity by 2028.
  • Nuclear power is increasingly examined as a supply option for data centre electricity demand.
  • Constellation Energy operates the largest nuclear generation fleet in the United States.

Constellation Energy (NASDAQ:CEG) is drawing attention amid growing discussions around the infrastructure required to support artificial intelligence (AI) expansion, particularly the electricity needed to operate large-scale computing systems. While AI investment conversations often focus on semiconductor hardware and data centres, electricity generation remains a key underlying requirement.

According to reporting cited by The Guardian, a single day of operation for a large AI model may require electricity comparable to the daily usage of approximately 1.5 million American households. Estimates referenced by MIT Technology Review suggest that by 2028, AI-related activity could consume electricity equivalent to 22% of total U.S. household demand.

These projections underscore the scale of power requirements associated with AI deployment.

Nuclear Power and Data Centre Electricity Needs
One energy source increasingly reviewed for large-scale computing operations is nuclear power. Nuclear generation can provide continuous baseload electricity with limited direct carbon emissions, which aligns with the operational requirements of data centres.

Constellation Energy, headquartered in Baltimore, Maryland, is the largest producer of nuclear energy in the United States. The company is also identified as the country’s largest carbon-free energy producer, primarily through its nuclear generation assets.

Technology companies have explored nuclear-backed power arrangements. Microsoft has partnered with Constellation Energy to restart a nuclear facility in Pennsylvania, with electricity output allocated for data centre operations.

Crane Clean Energy Center Capacity Overview
The restarted facility, known as the Crane Clean Energy Center, is expected to generate up to 835 megawatts of power at full capacity. The project is designed to operate over an extended period, contributing to long-term electricity availability for computing infrastructure.

Beyond individual projects, Constellation Energy has indicated that increasing electricity demand from data centres is reflected in its financial outlook. Based on its year-end 2024 baseline, the company expects earnings per share to grow at a compound annual growth rate of 10% through 2028.

Financial Metrics and Dividend Information
Over the past five years, Constellation Energy has recorded a revenue compound annual growth rate of 6.75%. The company reports a net income margin of 11% and a levered free cash flow margin of 12.3%. At current price levels, the shares offer a dividend yield of 0.46%, with dividend payments having increased in each of the past three years, based on the available information.

Share Price Performance
CEG shares closed at USD 342.52 on January 09, registering a 6.19% increase for the day. The stock opened at USD 339.50 and moved between an intraday high of USD 343.88 and a low of USD 333.67. The stock is below its 52-week high of USD 412.58 and above its 52-week low of USD 161.35.