NEW YORK, May 6 (Reuters) - Constellation Energy ( CEG )

is increasingly focused on potential data center projects that

connect to the U.S. electrical grid in a pivot away from the

company's previous emphasis on fueling the giant server

warehouses directly from its power plants, company executives

said on Tuesday.

Big Tech's race to secure huge amounts of electricity to

fuel its artificial intelligence expansion has led to new types

of deals with power companies, including so-called co-located

arrangements that link AI data centers directly to nuclear

plants, instead of waiting in line to connect to the grid.

Those co-located data center projects have faced recent

regulatory push-back over the potential for rising power bills

and grid reliability impacts caused by diverting electricity

from the grid to serve single customers like data centers.

"On-grid sales are increasingly attractive to us and to our

customers," Constellation CEO Joseph Dominguez said on an call

with investors. "I do want to make clear that we still believe

that behind-the-meter configurations will make sense for some

customers."

After ruling against a proposed expansion of an Amazon data

center connected to a Talen Energy ( TLN ) nuclear site, the Federal

Energy Regulatory Commission is currently considering new rules

for around co-located power projects.

Constellation, which is the largest operator of nuclear

power plants, had said in FERC filings that it was considering

co-located, and off-the-grid, data center projects at several of

its nuclear reactor sites.