Amazon Secures 1.92 GW Nuclear Power Deal for AWS Data Centers, Joining Tech Giants in Nuclear Energy Push

Amazon joins the big nuclear party, buying 1.92 GW for AWS | TechCrunch

Amazon tapped into an emerging trend this week, one that's seeing big tech firms buy power from existing nuclear power plants. The tech company will power a chunk of its AWS cloud and AI servers using 1.92 gigawatts of electricity from Talen Energy's Susquehanna nuclear power plant in Pennsylvania. Amazon is the latest hyperscaler to go direct to big nuclear operators, following on the heels of Microsoft and Meta. Amazon's deal was announced Wednesday, but it's not entirely new, instead modifying an existing arrangement with Talen. The old version had Amazon building a data center next to the Susquehanna power plant, siphoning electricity directly from the facility without first sending it to the grid. That deal was killed by regulators over concerns that customers would unfairly shoulder the burden of running the grid. Today, Susquehanna provides power to the grid, meaning every kilowatt-hour includes transmission fees that support the grid's maintenance and development. Amazon's behind-the-meter arrangement would have sidestepped those fees. This week's revisions shift Amazon's power purchase agreement in front of the meter, meaning the AWS data center will be billed like other similar customers who are grid-connected. The transmission lines will be reconfigured in spring of 2026, Talen said, and the deal covers energy purchased through 2042. But wait, there's more: The two companies also said they will look to build small modular reactors "within Talen's Pennsylvania footprint" and expand generation at existing nuclear power plants. Expanding existing power plants is typically an easier way to add new nuclear. They might include switching to more highly enriched fuel to produces more heat, tweaking the settings to squeeze out more power, or renovating the turbines for a bigger bump. Microsoft kicked off the trend last year when it announced that it would work with Constellation Energy to restart a reactor at Three Mile Island, a $1.6 billion project that will generate 835 megawatts. Meta hopped aboard earlier this month, also with Constellation, to buy the "clean energy attributes" of a 1.1 gigawatt nuclear power plant in Illinois. Amazon and Talen's pledge to build new small modular reactors is a longer shot, though there, too, Amazon is in good company with its peers. Several startups pursuing the concept with the hopes of cutting construction costs by mass producing parts. Amazon has invested in an SMR startup, X-energy, which is planning to add 300 megawatts of nuclear generating capacity in the Pacific Northwest and Virginia. New generation at existing reactors and new SMRs are intended "to add net-new energy to the PJM grid," Talen said, referring to the region's grid operator. That last bit is likely a bid to head off any criticism from regulators about leaving ratepayers holding the bag.

Talen Energy and Amazon sign nuclear power deal to fuel data centers

June 11 (Reuters) - U.S. utility Talen Energy (TLN.O), opens new tab announced on Wednesday an expanded nuclear energy partnership with Amazon.com (AMZN.O), opens new tab to supply up to 1,920 megawatts of electricity from its Susquehanna plant in Pennsylvania to Amazon Web Services (AWS) data centers. WHY IT'S IMPORTANT The long-term deal, lasting until 2042, ensures Talen a steady, long-term revenue stream while supporting Amazon's growing demand for carbon-free energy to power its AI and cloud operations. Both companies will also explore building new Small Modular Reactors within Talen's Pennsylvania footprint and pursue expanding the nuclear plant's energy output. CONTEXT U.S. electricity demand has risen for the first time in two decades, driven by the rapid growth of data centers and artificial intelligence, prompting Big Tech companies to scramble for reliable energy sources. Earlier in the month, Constellation Energy (CEG.O), opens new tab struck an agreement with Meta Platforms (META.O), opens new tab to keep one of the reactors in Illinois operating for 20 years. MARKET REACTION Talen Energy shares rose nearly 8% in the premarket trading. KEY QUOTES "We are making the largest private sector investment in state history - $20 billion- to bring 1,250 high-skilled jobs and economic benefits to the state, while also collaborating with Talen Energy to help power our infrastructure with carbon-free energy," Kevin Miller, AWS vice president of global data centers, said. Reporting by Sumit Saha in Bengaluru; Editing by Vijay Kishore Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:EnergyGrid & InfrastructureNuclear

Amazon signs nuclear energy deal to power AI data centers

Amazon joins a growing list of tech companies shifting to nuclear power to meet the energy-intensive needs of artificial intelligence. Tech company Amazon recently signed a deal with Talen Energy, a power infrastructure and provider company, for 1,920 megawatts (MW) of nuclear energy to fuel Amazon Web servers and AI data centers in Pennsylvania through the year 2042. According to an announcement from Talen, the energy will be produced at the company's Susquehanna nuclear facility and provide power to Amazon facilities in the region, with additional plans to explore small-modular nuclear reactor (SMR) technology. The energy will be supplied through the grid rather than directly from the nuclear plant as initially planned. This arrangement will help support the energy grid's maintenance through service fees paid by Amazon. Under the agreement, PPL Electric Utilities, an energy transmission company, will be responsible for delivering the power to Amazon. Christine Martin, president of PPL Electric Utilities, said: "Connecting large load customers like data centers to our transmission system helps lower the transmission component of energy bills for all customers, as large load customers pay significant transmission charges on our network." The move reflects the growing need for high-energy output infrastructure to power artificial intelligence and high-performance computing data centers as AI development becomes a key priority for global leaders. Related: Amazon doubles down on AI with $20B Pennsylvania investment In September 2024, tech company Microsoft signed a deal with Constellation Energy Corporation to re-open the Three-Mile Island nuclear site and provide power to its AI data centers. The 20-year deal included 835 megawatts of nuclear power delivered to the tech company, with the goal of bringing the facility online by 2028. More recently, on June 3, social media and tech corporation Meta agreed to purchase 1.1 gigawatts of nuclear power from Constellation over 20 years to power AI facilities. The shift toward nuclear energy generation has received support from several US lawmakers and political leaders, who urge innovation on the AI front to avoid falling behind international competitors. United States President Donald Trump has repeatedly voiced calls to dedicate more resources to nuclear power production to meet the demands of AI, cryptocurrency mining, and other high-performance computing applications.

Talen Energy and Amazon sign nuclear power deal to fuel data centers

US utility Talen Energy announced on Wednesday an expanded nuclear energy partnership with Amazon to supply up to 1,920 megawatts of electricity from its Susquehanna plant in Pennsylvania to Amazon Web Services (AWS) data centers. Why is it important? The long-term deal, lasting until 2042, ensures Talen a steady, long-term revenue stream while supporting Amazon's growing demand for carbon-free energy to power its AI and cloud operations. Both companies will also explore building new Small Modular Reactors within Talen's Pennsylvania footprint and pursue expanding the nuclear plant's energy output. Context US electricity demand has risen for the first time in two decades, driven by the rapid growth of data centers and artificial intelligence, prompting Big Tech companies to scramble for reliable energy sources. Earlier in the month, Constellation Energy struck an agreement with Meta Platforms to keep one of the reactors in Illinois operating for 20 years. Talen Energy shares rose nearly 8% in the premarket trading. "We are making the largest private sector investment in state history - $20 billion- to bring 1,250 high-skilled jobs and economic benefits to the state, while also collaborating with Talen Energy to help power our infrastructure with carbon-free energy," Kevin Miller, AWS vice president of global data centers, said.