The most interesting thing about Constellation Energy Corp's (NASDAQ:CEG) latest AI-power deal is not simply that Alphabet Inc's (NASDAQ:GOOGL) (NASDAQ:GOOG) Google needs more electricity.

It is that one of the biggest names in technology is effectively helping turn Constellation's nuclear fleet into long-duration infrastructure for the AI economy — potentially validating a $1.2 billion position held by billionaire investor Philippe Laffont's Coatue Management LLC.

Google Locks In Nuclear Power

Google has signed a 20-year agreement covering 3.59 gigawatts of electricity from Constellation, including 890 megawatts of additional nuclear capacity and another 2.7 gigawatts from Constellation's existing PJM fleet. The agreement is expected to support more than $4.3 billion of investment across 11 nuclear units in Illinois, Pennsylvania and New Jersey. The first incremental capacity is expected to come online in 2028.

That matters because the AI buildout is increasingly running into a basic physical constraint: electricity. Data centers can be built faster than new generation and transmission can be added, making reliable existing power assets more valuable to hyperscalers.

Constellation has been positioning itself around that shortage. In its second-quarter results, CEO Joe Dominguez said the company was "strengthening the nation's energy infrastructure" while meeting growing demand for reliable power. Constellation also raised its 2026 adjusted operating earnings guidance to $11.50-$12.50 per share and said it had signed another 920 megawatts of long-term power purchase agreements.

Laffont Already Had $1.2 Billion Riding

That makes Coatue's position particularly interesting.

The investment firm, founded by Laffont, reported owning 4.63 million Constellation shares worth about $1.15 billion at June 30, according to its second-quarter 13F filing. The position represented about 2.37% of Coatue's reported portfolio.

The filing does not reveal why Coatue owned the shares, nor whether the firm still holds the same position today. But the broader portfolio offers useful context. Coatue also held sizable positions in Alphabet, Amazon.com, Inc. (NASDAQ:AMZN), GE Vernova Inc. (NYSE:GEV), Eaton Corp (NYSE:ETN) and other companies tied to AI infrastructure and rising electricity demand.

That makes Constellation look less like an isolated nuclear bet and more like one piece of a broader infrastructure thesis.

Can Constellation Reverse Its Losses?

The timing is notable. Constellation shares entered Tuesday still down 26.93% year to date, despite a 35.15% discount to their 52-week high as of Monday's close. Shares jumped nearly 6% in premarket trading Tuesday following the Google news.

The stock therefore does not need another AI narrative as much as it needs evidence that the narrative can translate into durable earnings.

Google is providing some of that evidence. Amazon signed a separate 20-year agreement with Constellation last week that supports more than $3 billion of investment at Maryland's Calvert Cliffs plant, while Constellation already has major agreements involving Microsoft Corp (NASDAQ:MSFT) and Meta Platforms, Inc. (NASDAQ:META).

For investors, the next question is whether these long-term hyperscaler contracts can turn Constellation's nuclear advantage into the earnings growth the market has been waiting for.

If they can, Laffont's $1.2 billion position could look increasingly prescient; if not, the stock's steep 2026 decline may prove harder to reverse.