Amazon Secures 1,920 Megawatts Nuclear Power for AI Data Centers

Coin WorldSaturday, Jun 14, 2025 5:51 pm ET
1min read

Amazon has secured a significant amount of nuclear energy to power its AI data centers, marking a substantial step in its commitment to sustainable energy solutions. The tech giant has entered into a long-term power purchase agreement with Talen Energy, securing 1,920 megawatts of carbon-free electricity from Talen’s Susquehanna nuclear power plant. This agreement, which runs through 2042 with the potential for extension, aims to support Amazon's growing AI and cloud infrastructure needs.

The deal is part of Amazon's broader strategy to invest in clean energy sources. Talen Energy's President and CEO, Mac McFarland, highlighted the agreement as a "long-term, steady source of revenue," emphasizing Talen's role as a pioneer in the data center energy sector. The partnership not only ensures a reliable energy supply for Amazon but also positions Talen to support further investments in the region.

In addition to the immediate energy benefits, the agreement sets the stage for future innovation. Amazon and Talen will explore the deployment of Small Modular Reactors (SMRs) and capacity expansion at the Susquehanna plant. These initiatives are designed to inject new clean energy into the PJM grid, reinforcing the region's energy independence and sustainability goals.

Amazon's investment in Pennsylvania is substantial, totaling $20 billion, which is the largest private sector commitment in the company's history. This investment is expected to create 1,250 high-skilled jobs, further boosting the state's economic development. Kevin Miller, AWS VP of Global Data Centers, expressed pride in Amazon's role in advancing AI innovation through investments in the region's economic and energy future.

The current power arrangement will transition to a "front-of-the-meter" setup after a transmission reconfiguration in Spring 2026. This change will allow Susquehanna’s nuclear output to feed directly into the PJM grid, with PPL Electric Utilities managing the transmission. Christine Martin, president of PPL Electric Utilities, noted that connecting large load customers like data centers to the transmission system helps lower the transmission component of energy bills for all customers.

Policymakers have welcomed the deal, recognizing its potential to drive energy and economic growth. The partnership signals a new chapter in the region's clean energy and tech future. The deal underscores Amazon's commitment to sustainable energy solutions and its role in driving innovation in the tech industry.