Constellation Energy Corporation has secured 20-year power purchase agreements with major cloud providers Microsoft and Meta, guaranteeing more than 2,400 megawatts of carbon-free electricity capacity dedicated to AI data centers. These long-term contracts lock in stable, inflation-adjusted revenue streams and represent a strategic response to the surging demand for low-carbon power. By aligning with hyperscale customers on multidecade arrangements, Constellation ensures high utilization rates on its existing nuclear and renewables fleet while mitigating exposure to spot market price fluctuations.

In December 2025, Constellation closed its $26.6 billion acquisition of Calpine Corporation, adding approximately 51,000 megawatts of gas-fired and renewable power assets across North America. This deal elevates Constellation to the position of the largest producer of carbon-free electricity in the United States, increasing its total generation capacity by nearly 60%. The transaction was funded through a combination of equity issuance and investment-grade debt, which preserves the company’s investment-grade credit ratings with senior debt leverage estimated around 4.2 times EBITDA on a pro forma basis.

Since its October 2025 peak, Constellation’s stock has declined roughly 30%, reflecting investor concerns over proposed federal electricity price caps and potential regulatory interventions targeting utility margins. Despite this pullback, the company’s weighted average remaining contract life of more than 18 years and an average annual dividend growth rate of 6% over the past five years offer downside protection and attractive income potential. Analysts at leading brokerage firms have maintained consensus 'buy' ratings, citing Constellation’s low carbon footprint, resilient cash flows, and positioning to capture long-term AI infrastructure growth.