Amazon and power producer Talen Energy announced a new long-term Purchase Power Agreement (PPA), with Talen supplying Amazon with 1.9 GW of energy from its Pennsylvania-based Susquehanna nuclear power plant to Amazon Web Services (AWS) data centers in the region.
The agreement marks the latest in a series of nuclear deals by Amazon, as it moves beyond renewable energy to achieve its sustainability goals. Amazon pledged in 2019 to match all of the electricity consumed across its global operations, including data centers, corporate buildings, stores and fulfillment centers, with 100% renewable energy by 2030. While the company announced in July 2024 that it achieved its 100% clean energy goal 7 years ahead of schedule, it also stated at the time that the increasing demand for generative AI “will require different sources of energy than we originally projected,” and that it will explore new carbon-free energy sources in addition to its continued investments in renewables. The company recently revealed that it has invested over $1 billion over the past year in nuclear energy projects and technologies.
The transaction marks an expansion of the relationship between the companies. Last year, Amazon announced a deal to co-locate a data center facility next to Talen’s nuclear facility in Pennsylvania, helping to power data centers with carbon-free energy and preserving Talen’s existing reactor.
Talen President and CEO Mac McFarland 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. Talen is well-positioned to support Amazon’s energy needs as it invests further in the Commonwealth of Pennsylvania.”
Under the new agreement, Talen will provide Amazon with 1,920 megawatts of nuclear power through 2042, with options to further extend its duration, with the delivery schedule ramping over time, and reaching full volume by 2032.
Talen and Amazon also said that they will pursue expanding the nuclear plant’s energy output through uprates, with the intent to add net-new energy to the PJM grid, and that they will explore building new Small Modular Reactors (SMRs) in Pennsylvania.
AWS Vice President of Global Data Centers Kevin Miller said:
“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.”
