US energy giant Constellation Energy has agreed to acquire Calpine Corporation, an independent power producer, for $26.6 billion, including debt considerations.
The transaction includes 50 million shares of Constellation stock, $4.5 billion in cash, and the assumption of about $12.7 billion in Calpine’s net debt.
The acquisition will make Constellation the largest competitive retail electricity supplier in the US, serving 2.5 million customers.
Calpine is the largest generator of electricity from natural gas and geothermal resources in the US. It operates a fleet of 79 energy facilities with a generating capacity of more than 2.7GW.
The transaction, expected to close in the second half of 2025, would give the companies a collective capacity of 60GW. This capacity will span the continental US and include various sources, including nuclear, natural gas, geothermal, hydro, wind, and solar.
“By combining Constellation’s unmatched expertise in zero-emission nuclear energy with Calpine’s industry-leading, best-in-class, low-carbon natural gas and geothermal generation fleets, we will be able to offer the broadest array of energy products and services available in the industry,” said Joe Dominguez, president and CEO of Constellation.
Constellation is the largest provider of carbon-free energy in the US, with 86 percent of its output coming from the 15 nuclear power stations it owns across the US.
Calpine will operate as an independent entity, with CEO Andrew Novotny remaining in post.
“Together, we will be better positioned to bring accelerated investment in everything from zero-emission nuclear to battery storage that will power our economy in a way that puts people and our environment first,” said Novotny.
The acquisition will also expand Constellation's presence in Texas, the fastest-growing market for power demand, driven significantly by data center developments. Texas has seen some of the highest penetration of new renewables over recent years, ranked first in wind generation and second in solar, with 199,836GWh and 31,739GWh of generation capacity in 2023, respectively.
The state also has access to some of the country’s largest gas deposits, with 45 percent of its energy served directly by natural gas.
Constellation is a critical energy provider for the US data center market. In November, the firm reaffirmed its commitment to developing data centers on the sites of its US power plants, advocating for a series of narrow reforms to provide clarity, fair pricing, and price stability for customers and generators alike.
In 2023, Constellation signed an agreement with Microsoft to provide 35 percent of the energy needed to power Microsoft’s Boydton data center in Virginia from its fleet of nuclear power plants.
More in Critical Power
-
-
-
Episode The big battery comparison