Constellation CEO Joseph Dominguez recently emphasized that existing power plants, rather than new generation, will serve as the "bedrock" for supplying the initial phase of data centers with power. Speaking during an earnings conference call, Dominguez stated that relying solely on new power plant construction would unduly delay economic development. He clarified that the current system faces a "peak capacity concern, not an energy concern," indicating ample available capacity for over 99% of hours, with peak periods manageable through solutions like batteries, demand response, and peaking resources.
Constellation, a Baltimore-based independent power producer, owns approximately 55 GW of generation, including about 22 GW of nuclear capacity. Dominguez underscored the value of this fleet as a "fixed-price, clean energy resource" for data centers. The company also projects a potential increase of 1.1 GW in its nuclear fleet through uprates, as detailed in an August 2026 earnings presentation, further strengthening its capacity offerings.
The company is monitoring Texas's "Batch Zero" interconnection process, which has paused several projects tied to data centers. While Governor Greg Abbott has requested detailed information on power supplies and water use from planned data centers, Constellation executives, including Dave Dardis, chief of external affairs and growth officer, view this as a "temporary measure" and do not anticipate a "meaningful delay." They believe the required information can be provided quickly, making the pause manageable for the industry.
Looking ahead, Constellation anticipates that the currently low wholesale power prices in ERCOT will rebound as data centers come online and demand increases, according to Dominguez. He noted that battery storage and other resources are presently driving down electricity prices by entering the market before the expected load. Financially, Constellation reported robust second-quarter adjusted operating earnings of $2.55 per share, an increase from $1.91 per share year-over-year. The company also strategically sold its 606-MW gas-fired Brazos Valley power plant to LS Power for $860 million, a move CFO Shane Smith confirmed satisfies settlement obligations for its Calpine acquisition, contributing to expected gross proceeds of about $5.9 billion from asset divestitures.