Constellation Energy agreed to buy Calpine for $16.4 billion, combining two of the country’s largest electricity generators at a time when their product is in high demand from tech companies.
Including the assumption of debt, Constellation on Friday valued the cash-and-stock deal for the privately held Calpine at $26.6 billion.
The value of power generators has soared in the past year due in large part to artificial intelligence. Tech companies are adding new data centers amid a boom in demand for AI computing, and those facilities require massive amounts of electricity.
Constellation is the largest producer of nuclear power in the U.S., and Calpine is one of the largest generators of electricity from natural gas and geothermal sources.
Read more in the Wall Street Journal here.
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