Citi downgrades Constellation Energy after securing a 20-year nuclear power deal with Meta. The investment bank believes there’s limited near-term upside for the stock. Citi also downgraded the outlook for Constellation Brands from Buy to Neutral.

Facebook parent Meta announced an unprecedented deal with Constellation Energy, the largest American nuclear power plant operator, cementing Meta’s turn to turn to nuclear energy to power its energy intensive, generative artificial intelligence initiatives, and sending Constellation shares surging.

Tech giants are securing long-term nuclear energy deals to meet surging electricity needs from artificial intelligence. BNN Bloomberg reports that Meta has signed a 20-year agreement with Constellation Energy to expand nuclear output at the Clinton Clean Energy Center in Illinois.