<div id="readability-page-1"><div><ul> <li>Constellation Energy has completed its acquisition of Calpine, making it the largest electricity producer in the U.S.</li> <li>The company has signed 20 year nuclear power supply agreements with major tech companies, including Microsoft and Meta Platforms.</li> <li>A new federal policy now requires Big Tech to directly fund new power plants, reshaping how large power projects may be financed.</li> </ul> <p>Constellation Energy (NasdaqGS:CEG) now combines Calpine's natural gas and geothermal fleet with its existing nuclear assets, giving it a scale that few peers can match in serving power hungry customers. The stock closed at $289.06, with a 3 year return of about 3.4x and a 1 year decline of 16.3%, so you are looking at a name that has already moved significantly and has recently pulled back.</p> <p>For investors watching the growth of data centers and artificial intelligence, these long term deals with Microsoft and Meta, along with new rules that push Big Tech to fund new plants, put Constellation at the center of how future power capacity could be built. The key question from here is how the company structures contracts and capital commitments so that it can support large scale projects while managing risk for existing shareholders.</p> <p>Stay updated on the most important news stories for Constellation Energy by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Constellation Energy.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/723936ce-ac93-41ad-9a83-ad5f056b4c40/chart/quote-price?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/723936ce-ac93-41ad-9a83-ad5f056b4c40/chart/quote-price"/><figcaption>NasdaqGS:CEG 1-Year Stock Price Chart</figcaption></figure> <p>Why Constellation Energy could be great value</p> <p>The Calpine deal and the long dated contracts with Microsoft and Meta signal that Constellation is shifting further toward being a preferred partner for the data economy rather than a pure wholesale power trader. The sell off after the federal move to make Big Tech fund new plants shows that some investors worry policy could limit returns on the existing fleet, even as the company lines up customers that want exactly the kind of nuclear heavy, 24/7 power supply it offers.</p> <h3>Constellation Energy narrative, tested but still front and center</h3> <p>For many investors the core story here has been that Constellation sits at the intersection of rising AI and data center demand and a large nuclear footprint, supported by long term contracts like the 20 year deals with Meta and Microsoft. The new policy requirement for tech to underwrite new plants does not remove that story. However, it shifts attention to how much of future value might come from new build projects versus price exposure on already operating assets.</p> <h3>Risks and rewards in focus</h3> <ul> <li>🎁 Long term agreements with Microsoft and Meta provide clearer visibility on future cash flows tied to specific nuclear assets.</li> <li>🎁 The Calpine acquisition, expected to add about US$2b of annual free cash flow, gives Constellation more scale and fuel diversity when dealing with large power buyers.</li> <li>⚠️ Policy efforts to cap prices and push Big Tech to fund new capacity could limit upside from selling existing nuclear output at high market rates.</li> <li>⚠️ The stock has already delivered roughly 3.4x over 3 years and remains volatile, so sentiment swings around regulation and AI demand may continue to be sharp.</li> </ul> <h3>What to watch next</h3> <p>From here, watch how Constellation structures new contracts under the Big Tech funding rules, how Calpine integration affects its cash generation, and whether further nuclear or gas projects are backed by similar long term deals. If you want to see how other investors are thinking about these shifts, you can check out community narratives by heading over to this discussion hub.</p> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p></div></div>

EMLP

CEGX

<p>Constellation Energy has acquired Calpine, becoming the largest electricity producer in the U.S. The company signed 20-year nuclear power supply agreements with Microsoft and Meta, reshaping financing for large power projects. The stock closed at $289.06, with a 3-year return of 3.4x and a 1-year decline of 16.3%. The acquisition is expected to add $2 billion in annual free cash flow, but new policies may limit returns on existing assets. Investors should watch how Constellation structures contracts under new funding rules and the integration of Calpine.</p>

- Constellation Energy has completed its acquisition of Calpine, becoming the largest electricity producer in the U.S.  
- The company signed 20-year nuclear power supply agreements with Microsoft and Meta Platforms, with a new federal policy mandating Big Tech to fund new power plants.  
- This shift positions Constellation at the forefront of future power capacity development, while raising questions about contract structuring and managing risks for shareholders amid potential policy impacts.

Simplywall

Meta Platforms

Constellation Energy’s Calpine Deal And Tech Nuclear Pacts Reframe Growth Potential