Shares of Constellation Energy Corp (CEG) advanced 4.5% to close at $288.43 on Friday, buoyed by a regulatory filing revealing a significant new passive investment. Capital International Investors disclosed it holds a 5.5% stake in the power producer, amounting to over 17.1 million shares as of December 31, 2025.
The filing, a Schedule 13G submitted to the SEC, indicates the investment is passive, meaning the firm does not seek to influence or control company management. The move signals continued institutional confidence in the energy sector despite recent market volatility.
Data-Center Demand in Focus
The stake arrives as investors scrutinize which power generators can reliably meet soaring electricity demand from data-center expansion. Constellation, with its extensive generation fleet, sits at the center of this debate. The bullish thesis hinges on securing long-term power contracts and increased capacity payments.
However, significant hurdles remain. Analysts note that regulatory processes, permitting backlogs, and interconnection delays could slow the anticipated wave of deals. "Real world obstacles" like transmission bottlenecks and siting disputes pose risks, according to industry observers.
Market Awaits Grid Policy Clarity
With U.S. markets closed Monday for the Presidents Day holiday, traders will return Tuesday to assess fresh developments. Attention is focused on policy from PJM Interconnection, the nation's largest grid operator, which is crafting plans to handle massive new data-center load.
Earnings will provide the next major catalyst. Constellation is scheduled to report on February 19, with investors seeking details on contracted demand, pricing, and any impacts from evolving grid regulations.
