Amazon Secures 1,920MW Carbon-Free Power for AWS Expansion

Amazon has entered into a significant power purchase agreement (PPA) with Talen Energy, securing up to 1,920 megawatts (MW) of carbon-free electricity to support the expansion of its Amazon Web Services (AWS) data centers. This agreement, which runs until 2042, is designed to meet the increasing energy demands of Amazon's cloud and AI operations. The deal not only ensures a steady supply of electricity but also opens the door for joint exploration of Small Modular Reactor (SMR) technology, which are compact, advanced nuclear systems designed for quicker deployment than traditional nuclear reactors.

The partnership will allow electricity from Talen’s Susquehanna nuclear site to be used for Amazon’s local data campus and other AWS operations. In addition to delivering energy, Amazon and Talen will look at ways to develop new SMRs at Talen’s facilities. The companies also intend to increase the output of the existing Susquehanna nuclear plant through uprates – technical adjustments that boost a reactor’s generating capacity. The plan is to create new electricity for the regional grid, which coordinates the movement of wholesale electricity.

This deal is set to help secure Amazon’s future energy needs. The agreement provides a long-term, steady source of revenue and greater balance sheet flexibility through contracted revenues. The focus on the region is strategic, as AWS has committed significant investment, supporting the construction of data center infrastructure and bringing jobs to the area.

The choice to link that infrastructure with carbon-free nuclear energy is also a strategic one, as AWS looks to support the growing demands of generative AI and cloud computing. The move comes as electricity demand rises, largely due to the sharp growth of data centers and AI technologies, which require constant and reliable power. In response, technology firms like Amazon are seeking long-term energy contracts that provide consistent supply and meet carbon reduction goals.

Amazon is the latest in a string of tech firms embracing nuclear power. Earlier, Microsoft agreed with Constellation Energy to reopen the Three Mile Island plant, securing 835MW for AI needs. Meta inked a 20-year deal to purchase 1.1 gigawatts of nuclear energy from the same provider, marking a broader shift in tech toward green, high-capacity power solutions.

The momentum has caught up with policymakers, who continue to demand increased nuclear investment. The nuclear renaissance has another heavyweight believer—one dedicated to energizing the AI future. The partnership taps into the region’s strengths as a national energy leader and will power the largest economic development project. The deal is expected to create jobs, grow the economy, and ultimately add more power to the energy grid.