Amazon Web Services (AWS) has entered into a long-term agreement with US utility Talen Energy to secure up to 1,920 megawatts of carbon-free electricity from the Susquehanna nuclear power plant in Pennsylvania. Announced on Wednesday, the deal will run through to 2042, providing AWS with a reliable, emissions-free energy source to power its growing network of data centres and artificial intelligence operations. For Talen, the partnership offers a steady revenue stream at a time when demand for electricity is increasing nationwide.
In addition to the power supply agreement, the two companies will collaborate on the potential development of Small Modular Reactors (SMRs) within Talen’s Pennsylvania operations. They also plan to explore ways to expand the energy output of the existing Susquehanna facility, reinforcing their shared commitment to advancing nuclear technology and clean energy capacity.
The agreement reflects a broader trend among technology companies seeking dependable, sustainable energy sources to meet the soaring demand driven by AI and cloud computing. For the first time in two decades, US electricity demand is rising, fuelled by the proliferation of hyperscale data centres. In a similar move earlier this month, Constellation Energy struck a deal with Meta Platforms to extend the life of a nuclear reactor in Illinois by 20 years.
Investor confidence in Talen Energy surged on news of the agreement, with the company’s shares climbing nearly 8% in premarket trading.
Kevin Miller, Vice President of Global Data Centres at AWS, highlighted the scale and significance of the investment, stating: “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.”
