Constellation Energy Stock Drops as New York Data Center Moratorium Tightens Power Outlook

Constellation Energy shares have fallen 7.9% over the past month and 21.1% over the past year, as New York's one-year moratorium on environmental permits for large data centers creates uncertainty for power demand. The stock now trades at $252.39, well below analyst fair value estimates of $360 to $512, drawing attention from value investors. The company's nuclear assets and long-term contracts with tech firms like Meta and Microsoft are seen as structural growth drivers, but regulatory risks are now front and center. New York's permitting pause is a reminder that the regulatory environment for large-scale power consumption remains fluid. While Constellation's carbon-free power is in high demand from data centers and corporate buyers, the moratorium could slow new contract growth. Investors are weighing the deep discount in the stock against these headwinds, making it a key stock to watch for anyone tracking grid decarbonization and AI-driven electricity demand.