Talen Energy and Amazon Sign Nuclear Power Deal To Fuel Data Centers

Amazon Web Services has signed a long-term deal with Talen Energy to receive up to 1,920 megawatts of carbon-free electricity from the Susquehanna nuclear plant through 2042 to support AWS's AI and cloud operations. The partnership also includes plans to explore new Small Modular Reactors and expand nuclear capacity amid rising U.S. energy demand. Utility Drive reports: Under the PPA, Talen's existing 300-MW co-location arrangement with AWS will shift to a 'front of the meter' framework that doesn't require Federal Energy Regulatory Commission approval, according to Houston-based Talen. The company expects the transition will occur next spring after transmission upgrades are finished. FERC in November rejected an amended interconnection service agreement that would have facilitated expanded power sales to a co-located AWS data center at the Susquehanna plant. The agency is considering potential rules for co-located loads in PJM.

Talen expects to earn about $18 billion in revenue over the life of the contract at its full quantity, according to an investor presentation. The contract, which runs through 2042, calls for delivering 840 MW to 1,200 MW in 2029 and 1,680 MW to 1,920 MW in 2032. Talen will act as the retail power supplier to AWS, and PPL Electric Utilities will be responsible for transmission and delivery, the company said.
Amazon on Monday said it plans to spend about $20 billion building data centers in Pennsylvania.

'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.

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