Data Center PPA
A long-term power purchase agreement between nuclear power providers and data center operators to deliver firm, carbon-free electricity. Enables data centers to secure baseload power for AI and computing loads.
Data center PPAs typically span 10-20 years and specify capacity, pricing, and delivery terms. Examples include Microsoft's 2024 deal with Constellation Energy for 837 MW from Three Mile Island and Google's agreements with Kairos Power for SMRs. These contracts often include penalties for non-delivery and support nuclear restarts or new builds by guaranteeing revenue.
Why it matters now
In 2025-2026, data center PPAs drive nuclear investment amid surging AI demand, with hyperscalers committing billions to nuclear capacity. They address grid constraints and HALEU supply issues by funding SMR licensing and restarts.