Waiting for a rollback on the price...
Posted on 06/24/2026 3:32:56 AM PDT by DFG
Walmart is signing a long-term contract to buy nuclear power for the first time ever, a promising sign that the industry’s future is supported by more than just the AI data center boom.
The retail giant agreed on Tuesday to buy power from a nuclear plant in Illinois owned by Constellation Energy for its operations in the area, including its stores and a high-tech warehouse in Illinois that stores and sorts perishable food.
Walmart will buy 176 megawatts of power from the plant over a 15-year period, or enough power to serve around 150,000 homes.
The Walmart deal will allow Constellation to expand the capacity of the Illinois plant by 30 megawatts, a process known as an uprate, which can involve replacing older equipment and improving efficiency.
The financial terms were not disclosed, but these types of deals tend to go for premium prices because they allow the buyer to lock in their costs over a long period.
Walmart, which has pledged to eliminate net carbon emissions from its U.S. operations by 2040, will also receive the environmental attributes associated with the nuclear energy, which generates electricity without carbon emissions.
Constellation stock was down 0.3% on Tuesday, outperforming the S&P 500’s decline.
The deal isn’t large enough to significantly boost Constellation’s growth trajectory, given that Constellation has 55 gigawatts worth of generating capacity and the Walmart deal represents less than 0.5% of that total.
Still, investors are eager to see Constellation sign more long-term power agreements, particularly with technology companies seeking electricity for AI data centers.
A lack of similar announcements has contributed to the stock’s 25% decline this year, following multiple years of double-digit gains.
(Excerpt) Read more at msn.com ...
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I’m confused. Power generated, regardless of the source, goes out on the general grid everyone accesses. What is the significance of Walmart saying they’ll buy nuclear power off the grid? Since the grid is powered by lots of different technologies, natural gas, coal, oil, (cough)solar and possibly unicorn farts, how will they know they’re getting just nuclear?
The model for power generation forever has been to socialize the cost of constructing a new plant by raising everyone’s rates. Does this article indicate that the cost of new generation is now being underwritten by the users of that new capacity? If that’s the case, will the power grid also benefit when that capacity is otherwise sitting idle? If so, will that affect the billing rates?
Enquiring minds need to know. (And you’re really old if you understood that cultural reference.)
They will build their own small reactors beside their locations.......................
I’m sure the promises come with a reduced rate.
They should. Buying in bulk!............
No, the deal is to buy from Constellation directly. This is not coming from the “grid”. By agreeing to purchase this power directly Constellation can get backing to increase their generation capacity. Without this, Constellation would have to beg Illinois to allow them to push more capacity onto the grid - which impacts other producers, etc. Then they’d have to pay off Pritzker and whoever the current goon is in Chicago - I can’t keep track.
Darn.
I thought the story would be about nuclear plants we could buy at Walmart
I want one
The coming era of SMRs, Small Modular Reactors, will soon be here with Microsoft buying some for it’s Data Centers. It’s only logical that businesses like Amazon, Walmart, Costco and many others that consume gigawatts of power will be needing them and building them all over the place. And any excess power they generate can be put on the grid................
“They will build their own small reactors beside their locations......”
During the Cold War nuclear protests, protesters were breaking into nuclear plants and damaging controls. These are the kind of people who Super Glue themselves to the road to block traffic and splash paint on priceless artworks...you know, morons. The problem with the proliferation of nuclear power plants is the level of security required is high and very expensive. The quality of that security will be on a spectrum of NSA level all the way to passwords of 12345.
There should be automatic weapons issued with orders to shoot to kill any trespasser on nuclear powerplant property, no questions asked...........
Nice article, Avi. Which nuclear plant in Illinois? There is more than one.
And all of this while consumer electricity costs in Illinois continue to rise.
The only economic development in Illinois is new taxes, which drives state government payroll to administer the tax, data centers, solar panel fields, and the new hotel in DeKalb that will get to keep 90% of the sales tax revenue for the first 10 years of operation because, well, the local government is desperate for any kind of good news.
Waiting for a rollback on the price...
Didn't read the article?
I don’t want to 1000 miles near a “Small Modular Reactor”. Put them in the backyards of big tech ceo’s.
I don’t want to be 1000 miles near a “Small Modular Reactor”. Put them in the backyards of big tech ceo’s.
From my limited knowledge review of it, it seems that Walmart believes that electricity prices are going to skyrocket in the future. They have entered into an agreement with the power company that if they give them a big chunk of money right now to upgrade the generation capabilities, they will get a locked in, low rate in the future.
Guess who will be be paying the difference in 10-20 years from now?
Walmart - pays a big chunk now/receives a much bigger savings in the future - WIN
Power Company - gets their generation capacity increase for free because Walmart is paying for it. Will be able to charge significanlty more $ for significantly more output in 10-20 years - WIN
Us - will have to pay huge rates on power in the coming years to subsidize AI, data centers and warehouses.
Remember when all the data could fit on a thumb drive? 😂👍🇺🇸
The source is Barron’s not MSN.
“Base load affected facilities that follow the CCS pathway must meet a second phase standard based on 90% capture of CO2, using CCS, by 2035”
“Baseload affected facilities that follow the low-GHG hydrogen pathway must meet a second phase standard based on co-firing 30% low-GHG hydrogen by volume by 2032 and a third phase standard based on cofiring 96% by volume low-GHG hydrogen by 2038”
“must”
Walmart doesn’t want to pay for carbon capture scams.
It is a version of the Texas model.
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