Amazon and electricity producer Talen Energy have announced a new long-term Power Purchase Agreement (PPA), under which Talen will supply Amazon with 1.9 GW of power from its Susquehanna nuclear power station in Pennsylvania, destined for Amazon Web Services (AWS) data centres in the area.
This deal is the latest among several nuclear agreements by Amazon, as the company looks beyond renewable energy in its pursuit of sustainability goals. In 2019, Amazon committed to matching all the electricity consumed across its global operations, including data centres, corporate buildings, shops, and fulfilment centres, with 100% renewable energy by 2030. While Amazon announced in July 2024 that it had reached its 100% clean energy target seven years ahead of schedule, the company also noted that the increasing demand for generative AI would necessitate alternative energy sources beyond initial projections, prompting exploration of new carbon-free energy avenues alongside continued renewable investments. Recently, Amazon disclosed its investment of over $1 billion in nuclear energy projects and technologies over the past year.
This agreement signifies an extension of the relationship between the two corporations. Last year, Amazon announced plans to co-locate a data centre facility adjacent to Talen’s nuclear plant in Pennsylvania, enabling the powering of data centres with carbon-free energy while maintaining Talen’s existing reactor.
Talen President and CEO Mac McFarland commented:
“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.”
Under this new arrangement, Talen will supply Amazon with 1,920 megawatts of nuclear power until 2042, with options to extend its term further, ramping up delivery over time to achieve full volume by 2032.
Additionally, Talen and Amazon expressed intentions to expand the nuclear plant’s energy output via uprates, aiming to contribute new energy to the PJM grid, and they will explore the construction of new Small Modular Reactors (SMRs) within Pennsylvania.
AWS Vice President of Global Data Centres Kevin Miller stated:
“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 – $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.”
