Breaking News: GSA Announces Major Nuclear Energy Contract

The General Services Administration (GSA), which oversees government buildings and facilities, has just announced a groundbreaking 10-year contract for nuclear energy. This significant development comes on the heels of major tech companies making bold moves in the nuclear energy sector last year.

A New Era for Nuclear Energy: $840 Million Contract Signed with Constellation

The contract, valued at $840 million, is for 10 million megawatt-hours of electricity, which is equivalent to meeting the needs of over 1 million homes annually. The GSA has awarded this massive contract to Constellation, the largest nuclear fleet operator in the nation, and a company that recently announced an agreement with Microsoft to restart a nuclear reactor at Three Mile Island.

Nuclear Energy Takes Center Stage

According to Constellation spokesperson Paul Adams, nuclear energy accounts for about 4 million megawatt-hours of the total electricity required under this contract. This is a significant portion, highlighting the growing importance of nuclear energy in meeting the nation’s electricity demands.

Silicon Valley Turns to Nuclear Energy to Satisfy Growing Electricity Demand

The tech industry, particularly Silicon Valley, has increasingly turned to nuclear energy to power its massive data centers and AI facilities. The federal government, as the largest consumer of energy in the country, is also making significant strides in embracing nuclear energy as a reliable and clean source of electricity.

Constellation President Joe Dominguez on the Historic Contract

"This agreement is another powerful example of how things have changed," said Constellation president and CEO Joe Dominguez. "Frustratingly, nuclear energy was excluded from many corporate and government sustainable energy procurements. Not anymore. This agreement is another powerful example of how things have changed."

Constellation’s Commitment to Clean Energy

Constellation generates 10 percent of the nation’s carbon pollution-free energy, with a majority coming from nuclear power plants. The company also produces hydro, wind, and solar power, as well as electricity from gas-fired power plants. However, Constellation has set a goal of reaching 100 percent carbon-free electricity by 2040, compared to close to 90 percent today.

What You Need to Know About the Contract

The contract is significant not only for its value but also for its scope. The GSA has signed this massive contract with Constellation, which will allow the company to:

• Extend licenses for existing nuclear power plants
• Invest in new equipment and technology that should result in 135 megawatts of additional capacity

The added capacity will provide an additional 2.4 million megawatt-hours of electricity over the next 10 years.

Impact on Other Agencies

This contract not only affects GSA buildings but also extends to 13 other federal agencies, including:

• Department of Veterans Affairs
• Department of Transportation
• Federal Bureau of Prisons
• National Park Service
• Social Security Administration
• US Mint

A Stable and Reliable Source of Clean Energy

The GSA is framing this contract as a way to lock in more affordable prices for federal agencies. With increasing competition for limited clean energy sources and uncertainty over future electricity prices, this contract provides budgetary stability and protection from future price increases by keeping electricity costs fixed for 10 years.

A New Era of Nuclear Energy

This contract marks a significant shift in the nation’s approach to nuclear energy. Last year, major tech companies such as Google, Meta, Amazon, and Microsoft inked splashy nuclear energy deals, highlighting the growing importance of this clean source of electricity.

Biden Administration’s Commitment to Nuclear Energy

The Biden administration has made nuclear energy a key part of its plan to transition the US away from fossil fuels. Last October, the Department of Energy announced a $1.52 billion loan to help restart a retired nuclear generating station in Covert Township, Michigan.

Conclusion

This groundbreaking contract marks a new era for nuclear energy and underscores the growing importance of this clean source of electricity. As the nation continues to transition away from fossil fuels, nuclear energy is poised to play an increasingly significant role in meeting our energy demands.