Major Nuclear Energy Contract Awarded by General Services Administration
The General Services Administration (GSA), which is responsible for managing government buildings, has recently announced a significant nuclear energy contract. This announcement comes on the heels of several big tech companies making major nuclear energy deals last year.
10-Year, $840 Million Contract
The 10-year, $840 million contract is for 10 million megawatt-hours of electricity, which is equivalent to what’s needed for more than 1 million homes annually. The agency has awarded the contract to Constellation, which operates the nation’s largest nuclear fleet, and recently announced an agreement with Microsoft to restart a nuclear reactor at Three Mile Island.
Nuclear Energy as a Significant Portion of the Deal
According to Constellation spokesperson Paul Adams, nuclear energy makes up about 4 million megawatt-hours of the contract. This is a significant portion of the deal, indicating that nuclear energy will play a major role in meeting the electricity needs of government buildings and agencies.
Growing Interest in Nuclear Energy from Silicon Valley
Silicon Valley is increasingly turning to nuclear energy to satisfy electricity demand from AI data centers. The federal government is the nation’s single largest energy consumer, making this contract a big boon to the nuclear industry.
"This agreement is another powerful example of how things have changed."
According to Joe Dominguez, Constellation president and CEO, "Frustratingly…nuclear energy was excluded from many corporate and government sustainable energy procurements. Not anymore. This agreement is another powerful example of how things have changed."
Constellation’s Commitment to Nuclear Energy
Constellation says it generates 10 percent of the nation’s carbon pollution-free energy. A majority of its output is nuclear energy, but it also produces hydro, wind, and solar power. The company has set a goal of reaching 100 percent carbon-free electricity by 2040.
Details of the Contract
The contract will allow Constellation to extend licenses for existing nuclear power plants as well as "invest in new equipment and technology" that should result in 135 megawatts of additional capacity. The GSA agreed to purchase 2.4 million megawatt-hours of electricity from that added capacity over 10 years.
Impact on the Federal Government and the Nuclear Industry
The contract will provide federal agencies with budgetary stability and protections from future price increases by keeping their electricity costs fixed for 10 years. This is particularly important in the face of increasing electricity demand from data centers and AI facilities.
"This historic procurement locks in a cost-competitive, reliable supply of nuclear energy."
According to GSA administrator Robin Carnahan, "We’re demonstrating how the federal government can join major corporate clean energy buyers in spurring new nuclear energy capacity and ensuring a reliable, affordable supply of clean energy for everyone."
Extension to 13 Other Agencies
The deal also extends to 13 other agencies, including the departments of Veterans Affairs and Transportation as well as the Federal Bureau of Prisons, the National Park Service, the Social Security Administration, and the US Mint.
"This historic procurement locks in a cost-competitive, reliable supply of nuclear energy."
According to GSA administrator Robin Carnahan, "We’re demonstrating how the federal government can join major corporate clean energy buyers in spurring new nuclear energy capacity and ensuring a reliable, affordable supply of clean energy for everyone."
Growing Interest in Nuclear Energy from Tech Companies
Google, Meta, Amazon, and Microsoft have all inked splashy nuclear energy deals over the past year. In September of last year, Microsoft and Constellation announced a plan to restart a shuttered reactor at Three Mile Island in Pennsylvania.
"This agreement is another powerful example of how things have changed."
According to Joe Dominguez, Constellation president and CEO, "Frustratingly…nuclear energy was excluded from many corporate and government sustainable energy procurements. Not anymore. This agreement is another powerful example of how things have changed."
Biden Administration’s Commitment to Nuclear Energy
The Biden administration has made nuclear energy a key part of its plan to transition the US away from fossil fuels to energy sources that don’t cause climate change.
"This historic procurement locks in a cost-competitive, reliable supply of nuclear energy."
According to GSA administrator Robin Carnahan, "We’re demonstrating how the federal government can join major corporate clean energy buyers in spurring new nuclear energy capacity and ensuring a reliable, affordable supply of clean energy for everyone."
Trump Administration’s Mixed Record on Nuclear Energy
While President-elect Donald Trump plans to undo progress made toward clean energy, the Trump campaign agenda included efforts to "support nuclear energy production."
