Shares of Constellation Energy Corporation (CEG) closed sharply higher on Friday, February 15, 2026, capping a strong week for the independent power producer. The stock gained 4.46% to finish at $288.43, with trading volume reaching approximately 5.4 million shares, significantly above its average. This move extends a notable rebound, with the stock now up roughly 10% from its closing price on February 6.
Market Drivers: Grid Policy and Power Demand
The rally appears driven by two interconnected factors capturing trader attention. First, PJM Interconnection, the grid operator for a large swath of the eastern United States, has put forward a consequential proposal for new large-scale power customers, primarily data centers. The plan would require such customers to either supply their own generation or agree to "connect-and-manage" protocols, which could mandate usage reductions during periods of grid stress.
Second, and directly related, is the burgeoning market for long-term power supply agreements with data center operators. Analysts like James West of Melius Research anticipate a "flurry of major data center-slash-power deals" from independent producers like Constellation. The company is already capitalizing on this trend. Its recently acquired Calpine unit signed a 380-megawatt supply agreement with CyrusOne for a planned Texas data center adjacent to Calpine's Freestone Energy Center, with an exclusive deal for a second 380 MW phase already in place. Constellation finalized its acquisition of Calpine in January.
Investor Interest and Sector Movement
Adding to the bullish sentiment, a recent SEC filing revealed that Capital International Investors reported ownership of 17,170,795 Constellation shares as of December 31, representing a 5.5% stake. The filing, a Schedule 13G amendment signed on February 12, typically indicates a passive, non-control-oriented investment.
Constellation was not alone in its ascent. Sector peers also moved higher on Friday, with Vistra (VST) gaining about 5% and NRG Energy (NRG) adding more than 6%. The utility sector (XLU) was the top-performing group in the S&P 500 for the session, even as the broader indexes were largely flat. The S&P 500 inched up 0.05%, while the Nasdaq Composite slipped 0.22% following softer-than-expected January U.S. consumer price data.
Challenges and Context
Despite the recent surge, analysts note real-world hurdles to the data center power boom. Rick Pederson of Bow River Capital highlighted obstacles such as permitting delays and a substantial backlog in the interconnection queue, which could slow the pace of new deals.
Furthermore, Constellation's stock, while rallying, remains nearly 30% below its 52-week high of $412.70, indicating there is significant ground to recover from previous declines.
Market Holiday and Forward Look
U.S. markets were closed on Monday, February 17, for the Presidents Day holiday, creating a shortened trading week. Activity is set to resume on Tuesday, with investors keen to see if the momentum behind utility and power stocks persists.
Market watchers will be focused on any new announcements regarding data center power contracts and, critically, on the progression of PJM's grid proposal—specifically whether it advances from discussion toward formal approval. The outcome could set the regulatory and economic framework for how America's largest power market accommodates explosive demand from artificial intelligence and computing infrastructure.
