1 00:00:02,440 --> 00:00:06,800 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:07,320 --> 00:00:11,000 Speaker 2: Constellation Energy is one of those companies. It is talking 3 00:00:11,000 --> 00:00:13,680 Speaker 2: to tech companies dealing with the issue of data centers 4 00:00:13,680 --> 00:00:16,200 Speaker 2: and AI. That's not because about sixty percent here to date, 5 00:00:16,239 --> 00:00:19,000 Speaker 2: it is the third best performing stock within the SMP, 6 00:00:19,239 --> 00:00:22,040 Speaker 2: behind super Micro and Nvidia. You would not have expected 7 00:00:22,280 --> 00:00:25,159 Speaker 2: a nuclear company to do that for the SMP. So 8 00:00:25,239 --> 00:00:28,040 Speaker 2: joining us now is Joe Dominga's president and CEO of 9 00:00:28,120 --> 00:00:31,520 Speaker 2: Constellation Energy. Joe such a pleasure when I kind of 10 00:00:31,520 --> 00:00:33,479 Speaker 2: saw the first quarter close out and I was like, 11 00:00:33,520 --> 00:00:35,400 Speaker 2: you're the best performing stock. We need to get you 12 00:00:35,440 --> 00:00:38,760 Speaker 2: on how many AI? How many big tech companies are 13 00:00:38,760 --> 00:00:41,519 Speaker 2: calling you right now? What's your relationship with them? 14 00:00:41,920 --> 00:00:45,040 Speaker 1: All the answers to all of them? I think everybody 15 00:00:45,120 --> 00:00:48,120 Speaker 1: is looking for power now. You both talked about it 16 00:00:48,159 --> 00:00:50,600 Speaker 1: was interesting, Alex. You said the remain guess what the 17 00:00:50,640 --> 00:00:53,800 Speaker 1: topic was and he said nuclear and you said, no AI. 18 00:00:53,840 --> 00:00:56,440 Speaker 1: And it turns out the answer to both questions or 19 00:00:56,840 --> 00:00:59,520 Speaker 1: both are the answer to the same question. Yes, people 20 00:00:59,520 --> 00:01:02,680 Speaker 1: are looking nuclear because AI demands a lot of power, 21 00:01:02,680 --> 00:01:04,360 Speaker 1: and it demands twenty four to seven power. 22 00:01:04,440 --> 00:01:05,640 Speaker 3: So that's exactly what we do. 23 00:01:06,560 --> 00:01:08,800 Speaker 2: So I've been covering commodities for like seventeen years. In 24 00:01:08,800 --> 00:01:11,640 Speaker 2: the beginning, everyone was talking about uranium because we love nuclear, 25 00:01:11,680 --> 00:01:13,560 Speaker 2: and then we stopped talking about nuclear for a long time, 26 00:01:13,600 --> 00:01:16,240 Speaker 2: and now we're talking about it again. What kind of 27 00:01:16,360 --> 00:01:19,840 Speaker 2: support do you have from the government with nuclear now, Like, 28 00:01:19,880 --> 00:01:22,000 Speaker 2: why is this time going to be different in terms 29 00:01:22,040 --> 00:01:23,160 Speaker 2: of nuclear expansion? 30 00:01:23,640 --> 00:01:26,440 Speaker 1: Well, look, I think it's the realization that as good 31 00:01:26,480 --> 00:01:29,760 Speaker 1: as renewables have been, and as important as storage and 32 00:01:29,760 --> 00:01:32,399 Speaker 1: other technologies like that could be in terms of firming 33 00:01:32,440 --> 00:01:35,920 Speaker 1: them up, we need baseload power in this country. We 34 00:01:35,959 --> 00:01:38,360 Speaker 1: need power that runs twenty four to seven for American 35 00:01:38,400 --> 00:01:42,360 Speaker 1: families and businesses. And you know, we don't just need 36 00:01:42,400 --> 00:01:44,240 Speaker 1: power when the wind is blown or when the sun 37 00:01:44,319 --> 00:01:47,280 Speaker 1: is out. So the reality is we're going to need 38 00:01:47,360 --> 00:01:49,840 Speaker 1: reliable power. We've seen that in different parts of the 39 00:01:49,880 --> 00:01:53,920 Speaker 1: country Texas, California, New England, even PJM. A couple of 40 00:01:53,960 --> 00:01:57,040 Speaker 1: winters ago, which is this large swath of states in 41 00:01:57,040 --> 00:01:59,800 Speaker 1: the middle of the country. We nearly lose the system 42 00:02:00,040 --> 00:02:02,280 Speaker 1: on Christmas Eve because we don't. 43 00:02:02,040 --> 00:02:03,520 Speaker 3: Have enough reliable power. 44 00:02:04,000 --> 00:02:07,280 Speaker 1: Nuclear has saved the day each and every time, and 45 00:02:07,320 --> 00:02:10,080 Speaker 1: it is also the key for the sustainability movement. So 46 00:02:10,639 --> 00:02:13,480 Speaker 1: it was a recognition that was long deserved and it 47 00:02:13,520 --> 00:02:16,639 Speaker 1: took long to come, but it's finally here and people 48 00:02:16,680 --> 00:02:20,200 Speaker 1: recognize it from a policy maker perspective, both sides of 49 00:02:20,240 --> 00:02:22,519 Speaker 1: the aisle, and of course from a market perspective. 50 00:02:22,560 --> 00:02:23,639 Speaker 3: And that's what we're talking about. 51 00:02:24,240 --> 00:02:26,400 Speaker 4: How quickly can we sort of get up to speed 52 00:02:26,400 --> 00:02:28,600 Speaker 4: on this, Joe, I know these things, these projects take 53 00:02:28,720 --> 00:02:29,919 Speaker 4: quite a long time to build. 54 00:02:30,360 --> 00:02:33,200 Speaker 1: Yeah, so let's kind of talk about it in pieces. 55 00:02:33,240 --> 00:02:35,480 Speaker 1: I think there are really four things we're talking about 56 00:02:35,480 --> 00:02:38,480 Speaker 1: when we're talking about nuclear. One is it wasn't so 57 00:02:38,600 --> 00:02:41,480 Speaker 1: long ago, and Alex made this point that we were 58 00:02:41,560 --> 00:02:45,720 Speaker 1: retiring nuclear plants. Now we've arrested that with the IRA, 59 00:02:45,919 --> 00:02:48,959 Speaker 1: but we need to get license renewal. We don't do that. 60 00:02:49,480 --> 00:02:51,880 Speaker 1: All the renewables we've built a day, all of that 61 00:02:51,919 --> 00:02:55,400 Speaker 1: progress will be gone overnight. So Number one, how do 62 00:02:55,480 --> 00:02:58,000 Speaker 1: we continue to invest the capital in these machines to 63 00:02:58,080 --> 00:03:00,880 Speaker 1: keep them operating for another twenty years. We think we 64 00:03:00,880 --> 00:03:03,919 Speaker 1: could do that and run through twenty sixty. Number two, 65 00:03:04,360 --> 00:03:08,000 Speaker 1: how do we increase the output of these machines through 66 00:03:08,040 --> 00:03:09,880 Speaker 1: what we call up rates in the business. And we 67 00:03:09,919 --> 00:03:12,119 Speaker 1: think there are thousands of mega loots that are available 68 00:03:12,120 --> 00:03:14,919 Speaker 1: to do that. That's going to be the newest new 69 00:03:15,080 --> 00:03:19,440 Speaker 1: megawat that is in the market. Third, can we continue 70 00:03:19,440 --> 00:03:21,800 Speaker 1: to do what the DOE announced a few weeks ago 71 00:03:21,960 --> 00:03:24,480 Speaker 1: and restarting some of the plants that were shut down 72 00:03:24,880 --> 00:03:28,080 Speaker 1: Palisades as an example of that. And then finally, how 73 00:03:28,120 --> 00:03:32,000 Speaker 1: do we bring in new technologies, new small modular reactors. 74 00:03:32,040 --> 00:03:35,120 Speaker 1: And my personal view is that those things are best 75 00:03:35,160 --> 00:03:38,680 Speaker 1: located where they're existing nuclear plants because that's where they're 76 00:03:38,680 --> 00:03:40,920 Speaker 1: going to be accepted by the community. That's where we 77 00:03:40,960 --> 00:03:44,240 Speaker 1: have security and the infrastructure and make them run most efficiently. 78 00:03:44,600 --> 00:03:47,480 Speaker 1: In terms of when that could be done, Canada thinks 79 00:03:47,480 --> 00:03:50,280 Speaker 1: it could be done sooner than the end of this decade. 80 00:03:50,680 --> 00:03:53,120 Speaker 1: I think the US is going to lag slightly behind, 81 00:03:53,320 --> 00:03:54,160 Speaker 1: but we'll be there. 82 00:03:54,760 --> 00:03:57,920 Speaker 2: That sounds expensive, joll like, who in essence is going 83 00:03:57,960 --> 00:03:59,080 Speaker 2: to be paying for all of. 84 00:03:59,040 --> 00:04:00,600 Speaker 3: This great question? 85 00:04:00,640 --> 00:04:03,440 Speaker 1: And maybe the answer is the same thing we started 86 00:04:03,440 --> 00:04:06,680 Speaker 1: out with the AI Companies are going to need enormous 87 00:04:06,680 --> 00:04:11,160 Speaker 1: amounts of power. Now we have available power today, We're 88 00:04:11,200 --> 00:04:13,240 Speaker 1: not in a supply and demand pinch in a lot 89 00:04:13,240 --> 00:04:16,080 Speaker 1: of parts of the country. So the first data centers, 90 00:04:16,080 --> 00:04:18,839 Speaker 1: if you will, will be located where we have access supply. 91 00:04:19,560 --> 00:04:22,120 Speaker 1: But as we think about building out more of that 92 00:04:22,320 --> 00:04:25,760 Speaker 1: technology infrastructure, and we're going to need it, the US 93 00:04:25,880 --> 00:04:28,359 Speaker 1: is not going to be behind on AI. It shouldn't 94 00:04:28,360 --> 00:04:32,200 Speaker 1: be from an economic standpoint or from a national security perspective. 95 00:04:32,560 --> 00:04:35,279 Speaker 1: Then it's going to be part of the responsibility of 96 00:04:35,320 --> 00:04:39,240 Speaker 1: these companies to support the next generation of clean, firm energy, 97 00:04:39,480 --> 00:04:40,960 Speaker 1: and they're already doing that. 98 00:04:41,080 --> 00:04:42,960 Speaker 2: Sounds like tech is going to pay for it, Joe, 99 00:04:43,160 --> 00:04:44,720 Speaker 2: Is that what you're saying. You're like, you guys want it, 100 00:04:44,839 --> 00:04:45,680 Speaker 2: you guys pay for it. 101 00:04:46,279 --> 00:04:48,000 Speaker 1: Well, I think that's part of it, right, I mean, 102 00:04:48,040 --> 00:04:50,560 Speaker 1: that's that's been a part of it. But I think 103 00:04:50,600 --> 00:04:53,320 Speaker 1: it's bigger than just tech. I think we need to 104 00:04:53,360 --> 00:04:56,839 Speaker 1: make sure that policy supports it and that we don't 105 00:04:56,880 --> 00:04:59,560 Speaker 1: have a situation that we had frankly when we were 106 00:04:59,560 --> 00:05:02,080 Speaker 1: shutting down on the plants, where we kind of thought 107 00:05:02,120 --> 00:05:06,280 Speaker 1: about the energy transition with really a perspective on two resources, 108 00:05:06,320 --> 00:05:07,080 Speaker 1: wind and solar. 109 00:05:07,400 --> 00:05:08,800 Speaker 3: We need to broaden our thinking. 110 00:05:09,240 --> 00:05:12,479 Speaker 1: Nuclear needs to be a part of that, Natural gas 111 00:05:12,520 --> 00:05:14,120 Speaker 1: with sequestration needs to be a. 112 00:05:14,080 --> 00:05:19,679 Speaker 3: Part of it. Look, we need firm, reliable. 113 00:05:19,160 --> 00:05:22,719 Speaker 1: Power as much as we need clean power, our families 114 00:05:22,720 --> 00:05:26,359 Speaker 1: aren't going to care about the energy transition if bills 115 00:05:26,360 --> 00:05:29,760 Speaker 1: aren't affordable and if the power doesn't turn on when 116 00:05:29,760 --> 00:05:30,599 Speaker 1: they throw the switch. 117 00:05:31,040 --> 00:05:33,240 Speaker 2: Yeah, that's definitely well, said Joe. Before we let you go, 118 00:05:34,200 --> 00:05:36,000 Speaker 2: there was a thesis like a couple weeks ago and 119 00:05:36,080 --> 00:05:38,280 Speaker 2: I was at an energy conference and it was like, Oh, 120 00:05:38,520 --> 00:05:40,160 Speaker 2: all these big tech companies are going to be their 121 00:05:40,200 --> 00:05:42,240 Speaker 2: own mini power stations. They're going to have their own 122 00:05:42,279 --> 00:05:44,520 Speaker 2: little nuclear reactor next to their data center and they 123 00:05:44,520 --> 00:05:48,560 Speaker 2: become self contained. Is that going to be true or not. 124 00:05:49,720 --> 00:05:51,280 Speaker 3: I think it's going to be partially true. 125 00:05:51,320 --> 00:05:53,479 Speaker 1: It's not going to be the answer to every application, 126 00:05:53,640 --> 00:05:58,320 Speaker 1: but there is already colocation of data centers with nuclear 127 00:05:58,360 --> 00:06:01,880 Speaker 1: facilities that have been built. We've done it at certain 128 00:06:01,960 --> 00:06:03,640 Speaker 1: plants on the fossil side of. 129 00:06:03,560 --> 00:06:06,280 Speaker 3: It, and I think it's going to make sense. 130 00:06:06,080 --> 00:06:08,240 Speaker 1: Because a lot of what we're talking about is the 131 00:06:08,279 --> 00:06:12,520 Speaker 1: wires and the integration costs. To do that most inexpensively, 132 00:06:12,960 --> 00:06:15,880 Speaker 1: we could co locate these facilities on land adjacent to 133 00:06:15,920 --> 00:06:18,680 Speaker 1: the plants, and we could provide lots of power to 134 00:06:18,760 --> 00:06:21,919 Speaker 1: them at the most affordable cost to our customer and 135 00:06:21,960 --> 00:06:23,840 Speaker 1: to the grid all. 136 00:06:23,800 --> 00:06:24,159 Speaker 3: Right, Joe. 137 00:06:24,200 --> 00:06:26,400 Speaker 4: Great to catch up with you, Joe Dimigaz. They're president 138 00:06:26,480 --> 00:06:29,440 Speaker 4: and CEO of Constellation Energy.