As part of the new power purchase agreement, Talen will supply energy from its Susquehanna nuclear power plant in Pennsylvania to AWS data centers in the region, according to a news release. (Source: Shutterstock)
Independent power producer Talen Energy Corp. has expanded its existing nuclear energy partnership with Amazon, agreeing to provide the tech company with 1.92 gigawatts of nuclear power through 2042.
The announcement was made June 11 as nuclear power, a carbon-free electricity source, gains support amid rising energy demand fueled in part by data centers.
“Amazon is proud to help Pennsylvania advance AI innovation through investments in the Commonwealth’s economic and energy future,” said Kevin Miller, vice president of global data centers for Amazon Web Services (AWS). “That’s why we’re making the largest private sector investment in state history–$20B–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.”
As part of the new power purchase agreement, Talen will supply energy from its Susquehanna nuclear power plant in Pennsylvania to AWS data centers in the region, according to a news release. The companies also will consider building new small modular reactors.
The long-term agreement has an extension option, Talen said.
“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 center strategy,” said Talen President and CEO Mac McFarland. “Talen is well-positioned to support Amazon’s energy needs as it invests further in the Commonwealth of Pennsylvania.”
Talen and Amazon’s existing agreement is a co-located arrangement. That will transition to a “front-of-the-meter” arrangement with Susquehanna providing power to the grid managed by PJM Interconnection and Talen acting as the retail electric generation supplier to Amazon. PPL Electric Utilities will handle transmission and delivery.
The transition is expected to take place after transmission reconfigurations are completed around the spring of 2026 along with Susquehanna’s refueling outage, Talen said.
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