Amazon Secures 1,920MW Nuclear Power Deal with Talen Energy
Amazon has signed a power purchase agreement (PPA) with Talen Energy to secure 1,920 megawatts of carbon-free electricity for AWS data centres.
The deal extends until 2042 and includes provisions for exploring Small Modular Reactor (SMR) technology within Talen’s Pennsylvania operations.
The agreement also aims to address Amazon’s expanding energy requirements as the company scales its cloud computing and AI infrastructure. Talen will supply electricity to Amazon’s data centre campus adjacent to the Susquehanna nuclear power station, with capability to deliver power to other Pennsylvania sites.
Both companies are examining opportunities to construct new SMRs within Talen’s Pennsylvania footprint, with the partnership also pursuing uprates to expand the nuclear plant’s energy output.
Part of this includes plans to add net-new energy to the PJM grid.
Significant partnership to drive growth opportunities
Mac McFarland, President and Chief Executive Officer at Talen, says the agreement provides the company with financial stability and operational flexibility.
“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,” he says. “We remain a first mover in this space and intend to continue to execute on our data centre strategy.”
The nuclear utility operator holds approximately 10.7 gigawatts of power infrastructure across the US, including 2.2 gigawatts (GW) of nuclear capacity and dispatchable fossil fuel generation assets.
Talen also produces and sells electricity, capacity and ancillary services into wholesale power markets, with generation facilities concentrated in the Mid-Atlantic region and Montana.
Following the announcement of the Amazon agreement, Talen Energy shares gained nearly 8% in premarket trading.
The company’s generation fleet serves wholesale markets across multiple states, with nuclear and fossil fuel assets providing baseload and dispatchable power generation.
A US$20bn pledge by AWS
The Pennsylvania investment represents Amazon’s response to rising electricity demand across the data centre sector. For the first time in two decades, US electricity consumption has increased, driven by data centre expansion and AI workloads.
In response, technology companies are securing long-term power agreements to support infrastructure growth and meet carbon reduction targets.
Amazon’s data centre operations require consistent and reliable power supply to support cloud services and AI processing capabilities. This new nuclear partnership provides carbon-free baseload generation to complement Amazon’s renewable energy portfolio across its global operations.
“Amazon is proud to help Pennsylvania advance AI innovation through investments in the Commonwealth's economic and energy future,” says Kevin Miller, Vice President of Global Data Centers at AWS.
“That's why we're making the largest private sector investment in state history – US$20bn – 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.”
Local support
Josh Shapiro, Governor of Pennsylvania, has voiced support for the partnership as part of the state’s energy development strategy. The agreement aligns with Pennsylvania’s position in regional energy markets and supports economic development objectives across the Commonwealth.
"This partnership between Talen Energy and Amazon taps into Pennsylvania's strengths as a national energy leader and will power the largest economic development project in Commonwealth history – creating good-paying jobs, growing our economy and ultimately adding more power to the PJM energy grid,” he says.
The Governor also emphasises Pennsylvania’s comprehensive energy approach and the state’s readiness to support project development.
“I am an all-of-the-above energy governor and as part of my economic development plan, my Administration is working to generate even more power in the Commonwealth – with more power comes more national security, more independence and more economic freedom,” he says.
Mac adds: “Talen is well-positioned to support Amazon's energy needs as it invests further in the Commonwealth of Pennsylvania.”
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