Constellation Energy Signs New 380 MW Agreement with CyrusOne
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy CEG?
Source: seekingalpha
- New Agreement Signed: Constellation Energy's Calpine unit has signed a new 380 MW agreement with data center developer CyrusOne to provide power and infrastructure for a new data center near the Freestone Energy Center in Texas, further solidifying its position in the energy market.
- Expansion Plans: Calpine has also entered into an exclusive agreement to provide an additional 380 MW of power and grid connectivity for Phase 2, which not only meets the growing demand for data centers but also lays the groundwork for future business expansion.
- Total Contract Capacity Increase: This deal brings the total contracted power capacity for CyrusOne's data centers in Texas to over 1,100 MW, demonstrating the company's strong performance and increased market share in a rapidly growing sector.
- Acquisition Completed: Last month, Constellation Energy completed its $16.4 billion acquisition of Calpine, further enhancing its competitive edge in the nuclear and renewable energy sectors, which is expected to drive future growth potential.
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Analyst Views on CEG
Wall Street analysts forecast CEG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CEG is 412.82 USD with a low forecast of 350.00 USD and a high forecast of 520.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
8 Buy
3 Hold
0 Sell
Moderate Buy
Current: 261.420
Low
350.00
Averages
412.82
High
520.00
Current: 261.420
Low
350.00
Averages
412.82
High
520.00
About CEG
Constellation Energy Corporation is a producer of emissions-free energy and an energy supplier to businesses, homes and public sector customers nationwide. The Company’s nuclear, hydro, wind, and solar generation facilities have the generating capacity to power the equivalent of 16 million homes, providing about 10% of the nation's clean energy in the United States. Its segments include Mid-Atlantic, Midwest, New York, ERCOT, and Other Power Regions. Through its integrated business operations, it sells electricity, natural gas, and other energy-related products and sustainable solutions to various types of customers, including distribution utilities, municipalities, cooperatives, and commercial, industrial, public sector, and residential customers in markets across multiple geographic regions. Its nuclear fleet has a generating capacity of approximately 22 gigawatts (GWs). It operates approximately 10 GWs of natural gas, oil, hydroelectric, wind, and solar generation assets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Constellation Energy Signs New 380 MW Agreement with CyrusOne
- New Agreement Signed: Constellation Energy's Calpine unit has signed a new 380 MW agreement with data center developer CyrusOne to provide power and infrastructure for a new data center near the Freestone Energy Center in Texas, further solidifying its position in the energy market.
- Expansion Plans: Calpine has also entered into an exclusive agreement to provide an additional 380 MW of power and grid connectivity for Phase 2, which not only meets the growing demand for data centers but also lays the groundwork for future business expansion.
- Total Contract Capacity Increase: This deal brings the total contracted power capacity for CyrusOne's data centers in Texas to over 1,100 MW, demonstrating the company's strong performance and increased market share in a rapidly growing sector.
- Acquisition Completed: Last month, Constellation Energy completed its $16.4 billion acquisition of Calpine, further enhancing its competitive edge in the nuclear and renewable energy sectors, which is expected to drive future growth potential.
See More
Constellation Energy's Calpine Signs 380 MW Power Agreement with CyrusOne
- Power Supply Agreement: Constellation Energy's subsidiary Calpine has signed a 380-megawatt power supply agreement with Dallas-based CyrusOne to provide electricity and infrastructure for a new data center adjacent to the Freestone Energy Center in Texas, ensuring smooth development of the facility.
- Phase Two Expansion: Calpine has also entered into an exclusive agreement to provide an additional 380 MW of power and infrastructure support, indicating the company's commitment to the data center market and preparing for future power demand growth.
- Regional Grid Support: This agreement allows CyrusOne to access the necessary power and grid connectivity, ensuring electricity supply for the new facility while maintaining regional grid stability, thereby enhancing Calpine's competitiveness in the power market.
- Positive Market Reaction: In pre-market trading on Nasdaq, Constellation Energy shares rose by 0.84% to $263.61, reflecting the market's positive response to the new agreement, which may drive future growth potential for the company.
See More
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- U.S. Steel Golden Share: The administration secured a golden share in U.S. Steel as a condition for approving Nippon Steel's acquisition, granting the president veto power over key business decisions, which ensures stability and growth in the U.S. steel industry, reflecting direct government intervention in vital sectors.
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- Nuclear Market Outlook: Constellation Energy, the largest nuclear operator in the U.S. with 21 reactors and 55 gigawatts of capacity, is well-positioned as data center power demand is projected to reach 106 gigawatts by 2035, a 36% increase from previous forecasts, laying a solid foundation for growth over the next decade.
- Centrus Energy Growth Potential: Centrus Energy experienced a 30% year-over-year sales increase in Q3 2025 and has secured government waivers for 2026 and 2027, establishing a strong position in the small modular reactor market, which is expected to benefit from rising nuclear energy demand.
- AI Demand Driving Energy Investments: With electricity demand from AI workloads expected to double by 2030, companies like Bloom Energy, Constellation Energy, and Centrus Energy are strategically positioned to capitalize on this trend, potentially leading to significant revenue growth in the coming years.
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- Stability of Nuclear Energy: Constellation Energy (CEG), the largest nuclear operator in the U.S. with 21 reactors, is well-positioned as data center power demand is projected to reach 106 gigawatts by 2035, a 36% increase from previous forecasts, providing the company with a long-term competitive advantage over the next decade.
- Centrus Energy's Market Potential: Centrus Energy (LEU) reported a 30% year-over-year sales increase in Q3 2025 and maintains a good relationship with the U.S. government, securing waivers for 2026 and 2027, positioning itself to benefit from government policies aimed at tripling nuclear capacity by 2050.
- AI Demand Driving Energy Growth: With the surge in AI workloads, electricity demand is expected to double by 2030, benefiting companies like Bloom Energy and Constellation Energy, further solidifying their positions in the energy market.
See More
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- Nano Performance: Since its IPO in 2024, Nano Nuclear Energy's shares have skyrocketed nearly 600%, and despite a net loss of $40.1 million in 2025, its cash position improved to $203.3 million, indicating potential in the micro-reactor market.
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See More
Constellation Energy Signs New 380 MW Agreement with CyrusOne
- New Agreement Signed: Constellation Energy's Calpine unit has signed a new 380 MW agreement with data center developer CyrusOne to provide power and infrastructure for a new data center near the Freestone Energy Center in Texas, further solidifying its position in the energy market.
- Expansion Plans: Calpine has also entered into an exclusive agreement to provide an additional 380 MW of power and grid connectivity for Phase 2, which not only meets the growing demand for data centers but also lays the groundwork for future business expansion.
- Total Contract Capacity Increase: This deal brings the total contracted power capacity for CyrusOne's data centers in Texas to over 1,100 MW, demonstrating the company's strong performance and increased market share in a rapidly growing sector.
- Acquisition Completed: Last month, Constellation Energy completed its $16.4 billion acquisition of Calpine, further enhancing its competitive edge in the nuclear and renewable energy sectors, which is expected to drive future growth potential.
See More
Constellation Energy's Calpine Signs 380 MW Power Agreement with CyrusOne
- Power Supply Agreement: Constellation Energy's subsidiary Calpine has signed a 380-megawatt power supply agreement with Dallas-based CyrusOne to provide electricity and infrastructure for a new data center adjacent to the Freestone Energy Center in Texas, ensuring smooth development of the facility.
- Phase Two Expansion: Calpine has also entered into an exclusive agreement to provide an additional 380 MW of power and infrastructure support, indicating the company's commitment to the data center market and preparing for future power demand growth.
- Regional Grid Support: This agreement allows CyrusOne to access the necessary power and grid connectivity, ensuring electricity supply for the new facility while maintaining regional grid stability, thereby enhancing Calpine's competitiveness in the power market.
- Positive Market Reaction: In pre-market trading on Nasdaq, Constellation Energy shares rose by 0.84% to $263.61, reflecting the market's positive response to the new agreement, which may drive future growth potential for the company.
See More
Trump Administration Increases Investments in Critical Minerals
- Surge in Investments: The Trump administration has made unprecedented equity investments in at least 10 companies over the past year, including critical minerals and chipmakers, aiming to build a domestic supply chain and reduce reliance on China, indicating a proactive government role in economic strategy.
- U.S. Steel Golden Share: The administration secured a golden share in U.S. Steel as a condition for approving Nippon Steel's acquisition, granting the president veto power over key business decisions, which ensures stability and growth in the U.S. steel industry, reflecting direct government intervention in vital sectors.
- Strategic Deal with MP Materials: The Defense Department struck a landmark deal with MP Materials, investing $400 million in preferred stock with rights to purchase additional shares, positioning the Pentagon as the largest single shareholder and further solidifying U.S. dominance in the rare earth mining sector.
- L3Harris and Defense Partnership: L3Harris announced a proposed partnership with the U.S. government, where the Pentagon will invest $1 billion in its rocket motor business, with plans for an IPO in the second half of 2026, allowing the Pentagon's investment to convert into common equity, enhancing the capital base of the defense industry.
See More
Energy Stocks Surge Driven by AI Demand
- Bloom Energy Revenue Surge: Bloom Energy reported a record revenue increase of 57.1% year-over-year in Q3 2025, driven by partnerships with tech giants like Oracle and CoreWeave, which provide steady revenue streams and highlight strong market demand in the AI data center sector.
- Nuclear Market Outlook: Constellation Energy, the largest nuclear operator in the U.S. with 21 reactors and 55 gigawatts of capacity, is well-positioned as data center power demand is projected to reach 106 gigawatts by 2035, a 36% increase from previous forecasts, laying a solid foundation for growth over the next decade.
- Centrus Energy Growth Potential: Centrus Energy experienced a 30% year-over-year sales increase in Q3 2025 and has secured government waivers for 2026 and 2027, establishing a strong position in the small modular reactor market, which is expected to benefit from rising nuclear energy demand.
- AI Demand Driving Energy Investments: With electricity demand from AI workloads expected to double by 2030, companies like Bloom Energy, Constellation Energy, and Centrus Energy are strategically positioned to capitalize on this trend, potentially leading to significant revenue growth in the coming years.
See More
Investment Opportunities in the Energy Sector
- Bloom Energy Performance: Bloom Energy (BE) achieved a 57.1% year-over-year sales increase in Q3 2025, securing partnerships with tech giants like Oracle and CoreWeave, which ensures stable revenue for several years and highlights strong market demand in the AI data center sector.
- Stability of Nuclear Energy: Constellation Energy (CEG), the largest nuclear operator in the U.S. with 21 reactors, is well-positioned as data center power demand is projected to reach 106 gigawatts by 2035, a 36% increase from previous forecasts, providing the company with a long-term competitive advantage over the next decade.
- Centrus Energy's Market Potential: Centrus Energy (LEU) reported a 30% year-over-year sales increase in Q3 2025 and maintains a good relationship with the U.S. government, securing waivers for 2026 and 2027, positioning itself to benefit from government policies aimed at tripling nuclear capacity by 2050.
- AI Demand Driving Energy Growth: With the surge in AI workloads, electricity demand is expected to double by 2030, benefiting companies like Bloom Energy and Constellation Energy, further solidifying their positions in the energy market.
See More
Nuclear Energy Market Resurgence and Investment Outlook
- Nuclear Demand Surge: The resurgence of nuclear energy demand, driven by big tech and AI growth, is expected to push nuclear power's contribution to nearly 20% of total electricity generation in the U.S., creating new growth opportunities for related companies.
- Nano Performance: Since its IPO in 2024, Nano Nuclear Energy's shares have skyrocketed nearly 600%, and despite a net loss of $40.1 million in 2025, its cash position improved to $203.3 million, indicating potential in the micro-reactor market.
- Constellation Diversification: As the largest nuclear power company in the U.S., Constellation generated $19.1 billion in revenue in the first nine months of 2025, a nearly 7% year-over-year increase, although its earnings per share fell by 34%, yet its diverse energy portfolio provides stability amid fluctuating nuclear demand.
- Investment Risks and Opportunities: While Nano's smaller market cap leads to higher volatility, its potential in emerging markets attracts investors; conversely, Constellation is viewed as a safer investment due to its stable revenue and growth track record.
See More
