Amazon and Constellation have entered into a 20-year agreement that will enable approximately 190 megawatts of additional output at the existing Calvert Cliffs plant coming online between 2030 and 2032. The agreement helps provide the long-term revenue certainty to support major investment in the plant and help position Calvert Cliffs for relicensing and continued operation for another 20 years.
This agreement does not involve any on-site development by Amazon at Calvert Cliffs that you may have heard Amazon representatives reference at community meetings in the past. Proposals for such development have been withdrawn. All electricity generated by Calvert Cliffs will continue flowing to the PJM regional grid, just as it does today.
The agreement will make it possible to increase output at the existing Calvert Cliffs plant by approximately 190 megawatts. In industry terms, this type of improvement is called an "uprate." An uprate uses upgrades to equipment, systems and operations at an existing plant to produce more electricity from the same site. It does not expand the plant’s geographic footprint and does not require building a new facility at the site.
Importantly, this is not taking power away from the grid and giving it to a data center at the site. Calvert Cliffs will continue delivering electricity to the PJM regional grid, where it helps support service to homes and businesses across Maryland and the region.
Amazon's long-term commitment includes 690 MW of power, inclusive of the 190 MW uprate, and helps provide the financial certainty needed for Constellation to make more than $3 billion in investments at Calvert Cliffs, including upgrades that support increased output and continued operation.
That certainty matters. In recent years, nuclear plants across the country have faced economic pressure from low power prices, and some were at risk of early retirement. While market conditions have changed, long-term commitments like this help reduce future uncertainty and support the investments needed for Calvert Cliffs to complete the five-year regulatory process to extend its operating license so that it can continue putting power on the grid for decades to come.
Calvert Cliffs is one of Calvert County's most important economic anchors. The plant supports more than 800 full-time jobs, contributes approximately $21 million in local taxes annually, and helps fund the schools, public services and infrastructure residents rely on every day.
By supporting the continued operation of Calvert Cliffs, the agreement will help sustain the recurring local economic activity generated by refueling outages. A recent outage brought more than 1,500 skilled electricians, pipefitters, welders, carpenters, laborers, steamfitters and other tradespeople to Calvert County for nearly a month, filling area hotels, restaurants and other businesses to capacity.
Constellation's commitment also extends beyond energy production. Calvert Cliffs employees and the Constellation Foundation support local nonprofits, schools, workforce programs, environmental organizations and community events across Southern Maryland. Recent efforts include community grants, STEM and workforce education, food security partnerships, volunteer projects, youth programming, community solar and support for local organizations that serve Calvert County residents.
These investments are part of Constellation's long-standing role as a community partner. Keeping Calvert Cliffs operating for decades will preserve reliable clean energy and the jobs, tax base, charitable giving and local partnerships that support the broader Southern Maryland community.
Amazon has withdrawn its proposed data center project at the Calvert Cliffs site. This power purchase agreement is not associated with building or operating a data center at Calvert Cliffs.
Instead, the agreement will help Amazon manage its energy needs at other facilities across the region, providing cost certainty over the 20-year term. No electricity produced by Calvert is being removed from the regional grid in connection with this transaction, and the arrangement does not contemplate a behind the meter data center.
As electricity demand grows, the country needs to preserve existing clean energy resources, increase their output where possible and build new sources of reliable power. This agreement shows how large energy users can help finance investments that strengthen the broader electric system instead of simply adding demand to an already constrained grid.
Amazon's long-term commitment supports existing and new clean generation and helps make major private investment possible. Without this kind of long-term certainty, the billions of dollars in upgrades needed to increase output and support continued operation would be far more difficult to justify.
Continued investment in Calvert Cliffs also helps preserve the site as a potential location for future nuclear development, including small modular reactor technology. Constellation is just beginning to evaluate whether a new reactor could make sense at the site, made possible by the current industrial zoning. No decision has been made, and any future project would require additional commercial commitments, community engagement, public review and all necessary regulatory approvals consistent with the site’s current zoning.