May 9 (Reuters) -

Constellation Energy ( CEG ) is considering building

next-generation nuclear plants on its existing sites to meet

soaring demand from data centers, executives with the

Baltimore-based power company said on Thursday.

The largest operator of U.S. nuclear energy said it is

looking at adding new small modular reactors and other energy

technologies to deliver electricity to large load customers like

data centers.

"We're seeing interest in developing projects that are

on a size and scale that presently don't exist," Constellation

CEO Joseph Dominguez said on a first-quarter earnings call with

investors. "What we're trying to do is get the contracts done

that lay out the gross amount of megawatts that are going to be

needed."

Customers of the possible new nuclear generation would fund

the projects through long-term power purchase agreements, while

Constellation would operate the units, the company said on its

first-quarter earnings call.

Data centers that support generative artificial intelligence

and other new technologies require very large amounts of

electricity for data-intensive computing and cooling systems.

They have roused the sleepy U.S. power industry in the past year

and led utilities to raise demand forecasts and increase capital

spending plans.

Constellation, which also generates electricity via

renewable sources like hydro, wind and solar, reported adjusted

first-quarter earnings of $1.82 per share, beating Wall Street

estimates on due to increased nuclear power generation and tax

credits related to the Inflation Reduction Act (IRA).

Analysts had expected earnings of $1.38 per share,

according to LSEG data.

The IRA provides billions of dollars in tax credits to clean

energy facilities, such as nuclear plants, in a push to

decarbonize the U.S. power sector.

The Baltimore, Maryland-based firm's nuclear fleet produced

45,391 gigawatt-hours (GWhs) and operated at 93.3% capacity

during the quarter, an uptick from the 42,463 GWhs produced at

92.8% capacity last year in the same period.

It also saw fewer outage days during the quarter, which

helped lower refueling costs.

Power consumption in the U.S. is expected to reach record

highs this year and the next, according to the U.S. Energy

Information Administration.

Total operating expenses were $5.3 billion, 29% lower than

the prior-year quarter, primarily due to 40% lower fuel costs.

Revenue for the quarter, however, fell 18.5% to $6.16

billion, lower than analysts' estimate of $7.85 billion.