Shares of nuclear power suppliers Constellation Energy and Vistra have risen significantly due to the anticipated growth in electricity demand from AI data centers. Constellation Energy experienced an 8.4% surge in their shares on Thursday following the announcement of two deals, worth over $1 billion, made with the federal government's General Services Administration. One of these agreements involves the provision of nuclear energy to multiple departments across five states.
In more recent events, Constellation announced a reversal in a previous ruling by the Treasury Department. This reversal now allows existing nuclear plants to qualify for federal tax credits under the 2022 Inflation Reduction Act, which led to a 3.5% rise in share prices.
The company stirred attention in September when it revealed plans to re-energize a unit of Pennsylvania's Three Mile Island to generate energy for Microsoft's data centers. This announcement resulted in a hike in share prices and ultimately contributed to an overall year on year increase of about 115%.
Vistra, similarly, has seen a rise in its share prices, correlating with the positive news for Constellation. Their share price rose by 8.6% and further 7% recently, topping the S&P 500 gainers on both days. Having reached a record high in November, Vistra's shares have grown over 300% over the past year.