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Higher power prices have created opportunities for nuclear operators to serve data centers that locate nearby, S&P Global Ratings said in an analysis posted Tuesday at UtilityDive.com, pointing to Constellation Energy (NASDAQ:CEG), Vistra (NYSE:VST) and Public Service Enterprise Group (PEG) as companies poised to take advantage.
Talen Energy’s recent deal with Amazon Web Services may provide a model for such opportunities, S&P said; Talen built a data center near its Susquehanna nuclear plant in Pennsylvania and then sold the facility to Amazon, along with a 10-year power supply contract.
S&P cited Constellation (CEG), Vistra (VST) and PSEG Power (PEG) as possible candidates to replicate the arrangement with their own dual-unit sites, according to UtilityDive.com.
Constellation (CEG) is considering building advanced reactors at existing plants to power data centers, Vistra (VST) is said to be in talks with data center operators in Texas and Ohio, and PSEG (PEG) has said it is in talks to supply data centers with capacity from the Hope Creek and Salem nuclear power plants in New Jersey.
While the nature of the data center co-location supply deal may change – S&P said gas-generation backed data centers may be under consideration in Texas – “we will be surprised if there are no transactions announced in 2024,” the firm said.
