Constellation Energy Secures 380 MW Data Center Power Deal, Sees 3.5% Rally
Constellation Energy's Calpine unit will supply 380 MW of power to CyrusOne's new Texas data center, with an option for a second 380 MW phase, bringing its total contracted capacity with CyrusOne above 1,100 MW. Shares jumped 3.5% following the agreement as the company taps into surging AI-driven electricity demand.
1. Deal Specifics
Constellation Energy’s Calpine LLC unit agreed to supply 380 megawatts of power, grid connectivity and site infrastructure for a new CyrusOne data center adjacent to the Freestone Energy Center in Freestone County, Texas. The contract includes an exclusive option for an additional 380 MW phase, bringing the total capacity under contract with CyrusOne in Texas to over 1,100 MW.
2. Strategic Rationale and Growth Drivers
The project employs Constellation’s Powered Land Capabilities model, which integrates generation assets, land and transmission access to accelerate large-scale power deployments. Management highlighted the agreement as a response to rising electricity demand from artificial intelligence workloads and broader data-economy expansion.
3. Stock Market Response
Shares of Constellation Energy rose approximately 3.5% on the day of the announcement, reflecting investor confidence in the company’s ability to capture high-margin, long-term power contracts. The deal bolsters the company’s contracted backlog and reinforces its positioning in the fast-growing data center power market.