Amazon Signs New Nuclear Deal to Power Data Centres
Amazon has entered a power purchase agreement (PPA) with Talen Energy for 1,920 MW of carbon-free electricity to support Amazon Web Services (AWS) data centres and explore Small Modular Reactor (SMR) technology.
Decades of carbon-free energy
Lasting until 2042, the long-term deal ensures Talen a steady revenue stream while supporting Amazon's growing demand for carbon-free energy to power its cloud and AI operations.
Under the terms of a new PPA, Talen will supply electricity to Amazon for operations that support AI and other cloud technologies at Amazon’s data centre campus adjacent to Susquehanna, with the ability to deliver to other sites across Pennsylvania.
Both companies will also explore building new Small Modular Reactors within Talen's Pennsylvania footprint and pursue expanding the nuclear plant's energy output through uprates, with the intent to add net-new energy to the PJM grid.
Celebrating collaboration
Mac McFarland, President and Chief Executive Officer at Talen, says: “Our agreement with Amazon is designed to provide us with a long-term, steady source of revenue and greater balance sheet flexibility through contracted revenues. We remain a first mover in this space and intend to continue to execute on our data centre strategy. Talen is well-positioned to support Amazon’s energy needs as it invests further in the Commonwealth of Pennsylvania.”
Kevin Miller, Vice President of Global Data Centers at AWS, adds: “Amazon is proud to help Pennsylvania advance AI innovation through investments in the Commonwealth’s economic and energy future. That’s why we’re making the largest private sector investment in state history – US$20bn – 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.”
Understanding the energy context
For the first time in two decades, US electricity demand has risen – catalysed by the rapid, exponential growth of data centres and AI, driving Big Tech companies to scramble for reliable energy sources.
After entering the new agreement with Amazon, Talen Energy shares rose nearly 8% in premarket trading.
Josh Shapiro (D), Pennsylvania Governor, comments: “This partnership between Talen Energy and Amazon taps into Pennsylvania’s strengths as a national energy leader and will power the largest economic development project in Commonwealth history – creating good-paying jobs, growing our economy and ultimately adding more power to the PJM energy grid.
“I am an all-of-the-above energy governor, and as part of my economic development plan, my Administration is working to generate even more power in the Commonwealth – with more power comes more national security, more independence and more economic freedom. My Administration is going to continue to bring people together to attract new investment to Pennsylvania, and we stand ready to work with Talen Energy and its partners to review permits for this project as efficiently as possible.”
About Talen
Talen Energy is a leading independent power producer and energy infrastructure company dedicated to powering the future. The company owns and operates approximately 10.7 GW of power infrastructure in the United States, including 2.2 GW of nuclear power and a significant dispatchable fossil fleet.
Talen produces and sells electricity, capacity and ancillary services into wholesale US power markets, with its generation fleet principally located in the Mid-Atlantic and Montana.
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