Constellation Energy Corp (CEG) stock surged 12.32% in pre-market trading on Tuesday, following the announcement of a groundbreaking 20-year power purchase agreement with Meta Platforms. This deal aims to keep Constellation's Illinois nuclear plant, the Clinton Clean Energy Center, operational through 2047.

The agreement marks Meta's first such arrangement with a nuclear power plant, driven by the tech giant's growing electricity needs for artificial intelligence and data centers. Under the deal, Constellation will be able to expand the Clinton plant's clean energy output by 30 megawatts through plant uprates. The financial terms were not disclosed, but Constellation CEO Joe Dominguez indicated that the agreement would help cover billions of dollars in costs for relicensing, upgrades, and maintenance of the facility.

This partnership between Constellation and Meta could serve as a model for other tech companies seeking to secure long-term, carbon-free power sources. The news has also sparked a broader rally in the nuclear energy sector, with several other nuclear-related stocks seeing significant gains in early trading. Investors appear to be betting on increased demand for nuclear power as tech companies look to meet their growing energy needs while maintaining commitments to clean energy.