Constellation Energy (CEG) shares surged Friday after the company agreed to buy private energy company Calpine in a deal valued at $26.6 billion that it said will create the largest clean energy provider in the U.S.

The move expands Constellation’s foothold in Texas and California, as well as in the Northeast with Calpine’s natural gas and renewable energy portfolio. Constellation expects the combination to add more than $2 billion in adjusted 澳洲幸运5官方开奖结果体彩网:free cash flow per year and $2 in 澳洲幸运5官方开奖结果体彩网:earnings per share (EPS) beyond 2026.

The cash and stock transaction valued at $16.4 billion consists of $4.5 billion in cash alongside 50 million shares of Constellation stock. Constellation will also assume ro🔯ughly $12.7 billion of Calpine net debt, bringing the net purchase price to $26.6 billion. 

The companies said the transaction is expected to cl🐟ose within 12 months.

Deal Comes as AI Data Centers💧 Drive Power Demand

The acquisition is set to expand Constellation’s capacity at a time when 澳洲幸运5官方开奖结果体彩网:power demand for 澳洲幸运5官方开奖结果体彩网:artificial intelligence (AI) data centers in the U.S. is expectꦦed to triple by 2030, Mizuho Research analysts said last year.

The rise in demand for AI applications has driven shares of Constellation and other energy providers like Duke Energy (DUK) and NextEra Energy (NEE) higher over the past year. 

Constellation shares were up over 23% at $300.50 in intraday trading Friday and have more than doubled in value over the past 12 months.