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Power for data centers

Utilities and power producers keep signing long contracts to serve data centers, while permits, grid rules and financing set how fast new supply arrives.

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Information and analysis only, not a recommendation to buy, sell or hold any security. The author may own securities discussed.

Researched and drafted with AI agents. Every figure is taken from a source cited on the page.

Analysis and information

What this theme is

Data centers for AI need large amounts of power around the clock. This theme covers the companies that supply it. They include power producers with nuclear and gas plants, regulated utilities that connect large new loads, a geothermal developer, an advanced-nuclear developer and Korea's public power company.

It also covers the rules that set the pace: state permits, grid-connection reviews and capacity markets.

The scale shows up in contracts. AEP signed 15 GW of new load commitments in the third quarter. It expects its incremental contracted load to reach 84 GW by 2031 (2026-10-28). Several recent deals add output at existing nuclear plants through uprates. These deals are backed by 20-year contracts with tech companies and by conditional federal loans.

What we're seeing

Contracts and financing

  • 2026-10-28, AEP: signed 15 GW of new load commitments in Q3. It counts load only when fully executed agreements or letters of agreement back it. It set a $100 billion capital plan for 2027 to 2031, including about $37 billion for transmission and $36 billion for generation.
  • 2026-10-27, Constellation: the Department of Energy (DOE) offered a conditional loan commitment of up to $5 billion. It covers uprates at eight plants in Illinois, Maryland and Pennsylvania. DOE says the work adds nearly 1.1 GW. The loan is not final until conditions are met.
  • 2026-10-21, NextEra: signed a 20-year agreement for about 1 GW from its Point Beach nuclear plant, pending Wisconsin approval. It plans up to 2 GW of gas and up to 2.6 GW of batteries for a data center campus at DOE's Paducah Site in Kentucky.
  • 2026-10-06, Constellation and Google: a 20-year agreement for 890 MW of new nuclear capacity in PJM, from uprates at 11 units. The first uprate is expected by 2028. A separate 15-year agreement covers 2,700 MW from existing PJM plants.
  • 2026-10-05, Vistra: DOE offered a conditional loan commitment of up to $4.2 billion for uprates at Beaver Valley, Davis-Besse and Perry. The work adds 433 MW. The offer includes an option for future uprates at Comanche Peak in Texas.

Permits and grid rules

  • Texas, August 2026: the governor told the state utility regulator and ERCOT, the Texas grid operator, to stop advancing data-center grid-connection requests during an audit.
  • Texas, 2026-09-21: the governor directed the state environmental agency, TCEQ, to halt data-center permits.
  • Texas, 2026-10-19: TCEQ confirmed the pause to the governor by letter. It covers permits for construction or infrastructure "directly supporting data centers." Watchdog groups reported the same week that some approvals had continued after the directive.
  • Texas, 2026-10-22: TCEQ confirmed it had suspended 17 stormwater and wastewater notices tied to data-center construction. They include an EdgeConneX campus in Bastrop County and a Google site in Tarrant County. TCEQ also shut its automated filing portal for these permits.
  • Texas, 2026-10-26: air-permit reviews for data-center support facilities appeared to continue. The pause has no end date. ERCOT's audit is scheduled to finish in late November, with findings in early December.
  • Virginia, reported 2026-10-14 to 2026-10-17: a state senator filed SB 843 for the 2027 session. It would pause new data-center approvals statewide from July 1, 2027 to July 1, 2030. The pause would cover localities, the Department of Environmental Quality and the State Corporation Commission. At least two other moratorium bills are pending. No vote has taken place.
  • PJM, 2026-09-29: FERC accepted PJM's one-time reliability backstop procurement but suspended it for five months, to an effective date of 2027-02-28. PJM did not start the procurement on 2026-09-30. It said "actual timing is to be determined."
  • Korea, 2026-10-12 to 2026-10-26: A temporary limit on KEPCO's borrowing ends at the end of 2027. Its bonds are then projected to pass the legal cap by more than 19 trillion won. KEPCO's president told lawmakers a minimum power rate increase is needed. The energy minister said lowering the cap on schedule will be difficult.

What to watch

  • Q3 reports: Talen on 2026-11-03. Ormat on 2026-11-04 after the close. Vistra and Oklo on 2026-11-06. Dates for Constellation's and KEPCO's Q3 reports are not confirmed.
  • Texas: any end date for the TCEQ pause, and ERCOT's audit findings, expected in early December.
  • Virginia: SB 843 and the other moratorium bills when the session opens on 2027-01-13. Virginia hearings on the NextEra and Dominion Energy combination are set for November, with final orders expected in January 2027.
  • PJM: a new timeline for the backstop procurement, which FERC set to take effect on 2027-02-28.
  • Pending approvals: Nevada regulators on Ormat's geothermal agreement of up to 150 MW serving Google. Ormat said in February it expected a decision in the second half of 2026. Wisconsin regulators on NextEra's Point Beach agreement.
  • Federal loans: whether DOE's conditional commitments to Constellation and Vistra become final agreements.
  • Oklo licensing: any NRC summary or next step after the closed 2026-10-22 meeting on its planned fuel reprocessing facility.
  • Korea: any power rate decision or change to KEPCO's bond cap law.

The peers

  • TLN: supplies Amazon's data centers from its Susquehanna nuclear plant under a contract through 2042. Talen Energy
  • CEG: largest US nuclear energy company, adding uprate capacity under contracts with Google and Amazon. Constellation Energy
  • VST: Texas-based producer with 20-year nuclear supply contracts for Meta and Amazon. Vistra
  • OKLO: advanced-nuclear developer that aims to deploy its first small fast reactor in 2028. Oklo
  • ORA: geothermal producer with a pending agreement to supply new capacity for Google in Nevada. Ormat Technologies
  • AEP: regulated utility that expects 84 GW of incremental contracted load by 2031. American Electric Power
  • NEE: builds gas, battery and nuclear supply for large-load hubs, with a Dominion Energy combination under review. NextEra Energy
  • KEP: Korea's public power utility, funding grids for chip clusters as its borrowing nears a legal cap. Korea Electric Power

Companies in this theme

Sources

Primary means the publisher of the data or the filing; secondary means press or an aggregator.