Constellation Energy (NASDAQ: CEG) has been amongst the hottest stocks in the market in 2024, with its shares up 125%. Those aren't the types of returns people usually associate with utility companies in such a short period of time. However, when a company is connected to the AI revolution, it's not so surprising. Most of this return has come just over the past week. Shares are up 26% since the company announced a blockbuster deal with a top tech firm.
Constellation Energy announced on Sept. 20 that it has entered into a 20-year agreement with Microsoft to supply the firm's data centers. The company plans to reopen the Three Mile Island nuclear facility and exclusively sell the generated electricity to Microsoft. This is a massive deal and deserves to be broken down further.
Three Mile Island Reopening Could Set a New Precedent
There are many interesting aspects of this deal. Most will first recall that in 1979, Three Mile Island was the site of the only nuclear meltdown in U.S. history. Although the accident did not directly cause any injuries or deaths, it hindered the progress of the nuclear industry for years.
However, it's important to note that the reactor scheduled for reopening is not the same one from 1979. That was Unit 2, while this nuclear deal involved Unit 1. Unit 1 continued to operate ...
