United States: Nuclear plant-owning utilities may join energy deals this year

A recent S&P Global Ratings research note has found that nuclear plant-owning utilities in the US are likely to sign energy deals with data centers this year. The report noted that nuclear operators poised to take advantage include Constellation Energy Group, PSEG Power, and Vistra.

“While this demand narrative could be oversold, or likely not translate into corresponding supply additions because of infrastructure constraints, there is no denying that demand is increasing for the first time in nearly two decades,” S&P said. “Recognizing the demand surge, power prices in almost all markets are higher,” compared with 2023.

Other energy companies with nuclear plants in operation could be well-set to sign similar deals. S&P said, “We will be surprised if there are no transactions announced in 2024. We think that nuclear complexes such as the Salem and Hope Creek generation stations are potential candidates. They have adequate interconnection, significant generation redundancies, and are ideally located to provide edge computing near load centers."