Shares of Constellation Energy Corporation (CEG) rebounded 3.14% to $262.00 in pre-market trading after closing 3.99% lower at $254.02 in the previous session. The recovery followed the announcement of a major nuclear energy agreement between Constellation and Amazon, under which the companies plan more than $3 billion in infrastructure investment at Maryland's Calvert Cliffs nuclear facility.

Amazon Agreement Supports Calvert Cliffs Expansion

Constellation and Amazon signed a long-term agreement supporting continued investment in the Calvert Cliffs Clean Energy Center. The Maryland facility currently operates with 1,790 megawatts of nuclear generating capacity, and planned upgrades will add approximately 190 megawatts of emissions-free generation between 2030 and 2032. Capacity additions of this kind, often called uprates, expand output at plants that already hold operating licenses, grid connections, and an experienced workforce.

The expansion forms part of a 20-year agreement covering 690 megawatts of electricity from the facility, a total that includes the planned 190-megawatt increase in generation capacity. Amazon also signed a related electricity supply agreement covering its operations across the 13-state PJM market, the footprint served by PJM Interconnection, the regional transmission organization that operates the wholesale electricity market across those states.

The arrangement provides Constellation with long-term revenue support for upgrades and continued plant operations. Constellation also plans to pursue another 20-year operating license for the nuclear facility, a renewal that falls under the review of the U.S. Nuclear Regulatory Commission. In addition, the agreement could support the development of further clean-energy facilities at the Calvert Cliffs site.

Amazon Strengthens Long-Term Nuclear Energy Supply

Amazon will use the arrangement to support electricity needs across its regional facilities, while Calvert Cliffs will continue supplying all generated electricity directly into the wider PJM regional grid, a setup commonly described in the industry as a front-of-meter arrangement. The structure allows Amazon to support new generation capacity without removing electricity from regional power markets.

The agreement also gives Amazon greater visibility over long-term energy costs across the region, while providing Constellation with predictable revenue for major infrastructure spending. Both companies aim to increase reliable carbon-free electricity while supporting broader power grid requirements.

Large technology companies have increased their focus on nuclear energy as electricity demand rises from data centers. Nuclear facilities provide continuous electricity generation without direct carbon emissions during operations. As a result, long-term power agreements can support both data-center growth and nuclear infrastructure investment.

Calvert Cliffs Remains Central to Maryland Energy

Calvert Cliffs is located in Lusby, along the western shore of Maryland's Chesapeake Bay. The nuclear facility produces about 80% of the state's clean electricity, and its annual output can supply the equivalent power needs of more than 1.3 million homes.

The facility currently employs more than 800 workers across its operations and contributes about $21 million annually through taxes that support public services. Those payments help fund schools, roads, and other local infrastructure around the plant.

The planned investment will modernize equipment across both generating units while increasing the facility's overall production capacity. Constellation expects the project to strengthen the plant's long-term role within Maryland's electricity system. Amazon's commitment also creates financial support for potential advanced nuclear at the same location. With upgrades scheduled between 2030 and 2032 and a renewed operating license to be pursued, the site's expansion now carries a multi-year timeline of construction and regulatory milestones.

This article originally appeared on Blockonomi.