Microsoft is estimated to pay Constellation Energy a premium under a 20-year power purchase agreement to restart a unit of the Three Mile Island nuclear plant in Pennsylvania. The deal addresses the rising demand for clean energy from AI-powered data centers. Jefferies analysts estimate that Microsoft will pay a significant premium for its power purchase agreement with Constellation, exceeding typical market rates for similar deals. They noted that customers are increasingly willing to pay higher prices for virtual nuclear agreements, boosting demand for these energy contracts.
Category
đ
NewsTranscript
00:00It's Benzinga, and here's what's on the block.
00:03Microsoft is estimated to pay Constellation Energy a premium under a 20-year power purchase
00:08agreement to restart the unit of the Three Mile Island nuclear plant in Pennsylvania.
00:13The deal addresses the rising demand for clean energy from AI-powered data centers.
00:18Jeffries analysts estimate that Microsoft will pay a significant premium for its power
00:22purchase agreement with Constellation, exceeding typical market rates for similar deals.
00:27They noted that customers are increasingly willing to pay higher prices for virtual nuclear
00:31agreements, boosting demand for these energy contracts.
00:35For all things money, visit Benzinga.com.