U.S. utility company Talen Energy has announced an expanded partnership with Amazon.com to supply nuclear power to the tech giant’s data centers. The deal, which will last until 2042, involves providing up to 1,920 megawatts of electricity from Talen’s Susquehanna nuclear plant in Pennsylvania to Amazon Web Services (AWS) data centers.
Why It Matters
The long-term agreement ensures a steady revenue stream for Talen Energy while supporting Amazon’s growing demand for carbon-free energy to power its artificial intelligence and cloud operations. The partnership also includes plans to explore the construction of new Small Modular Reactors within Talen’s Pennsylvania footprint and to expand the existing nuclear plant’s energy output.
Context
The deal comes at a time when U.S. electricity demand has risen for the first time in two decades, driven primarily by the rapid growth of data centers and artificial intelligence. This surge has prompted major tech companies to seek reliable energy sources. Earlier in the month, Constellation Energy signed an agreement with Meta Platforms to keep one of its reactors in Illinois operational for 20 years.
Market Reaction
Following the announcement, Talen Energy’s shares rose nearly 8% in 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,” said Kevin Miller, AWS vice president of global data centers.
