Shares of Vistra (VST +1.19%) climbed more than 10% on Friday after the electricity provider announced long-term power purchase agreements (PPAs) with Meta Platforms (META 2.46%).
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Vistra's nuclear plants are getting a second lease on life
Under the terms of the 20-year PPAs, Vistra will supply over 2,600 megawatts (MW) of zero-carbon energy from three of its nuclear plants to support Meta's artificial intelligence (AI)-fueled expansion.
This includes 2,176 MW of operational nuclear energy from Vistra's Perry and Davis-Besse plants in Ohio, as well as 433 MW of incremental nuclear power from planned equipment upgrades at these two facilities and Vistra's Beaver Valley plant in Pennsylvania.
Vistra, in turn, intends to pursue license extensions at all three plants that could extend their operations for another two decades. Prior to Vistra's acquisition of these facilities in 2023, the plants were slated for retirement.
NYSE: VST
Key Data Points
Meta Platforms is acting today to secure its long-term AI energy needs
Meta's power purchases are expected to commence in late 2026. Vistra plans to bring capacity online through 2034.
"At Meta, we are investing in nuclear energy because it provides clean, reliable power that is essential for advancing our AI ambitions," Meta executive Urvi Parekh said in a press release.
