Talen Energy has announced the expansion of its partnership with Amazon by signing a new power purchase agreement (PPA) to supply carbon-free electricity to Amazon Web Services (AWS) data centres from its Susquehanna nuclear power plant in the US state of Pennsylvania.
The move will support the supply of clean energy to Amazon’s data centre campus located adjacent to the power plant, and potentially to other Pennsylvania locations.
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Talen will deliver up to 1.92MW of nuclear power to Amazon through to 2042 with options to extend.
The schedule for power delivery will increase gradually, reaching full capacity by 2032.
The current co-located load arrangement between the two companies will evolve into a front-of-the-meter system after transmission reconfigurations are completed around spring 2026.
Once these changes take effect, Susquehanna will feed its carbon-free electricity directly into the PJM [Pennsylvania/New Jersey/Maryland] grid, with Talen serving as Amazon’s retail electric supplier and PPL Electric Utilities handling transmission and delivery responsibilities.
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By GlobalDataThis long-term deal is expected to reduce market risks for Talen and minimise its dependence on federal tax credits associated with nuclear production.
Talen president and CEO Mac McFarland stated: “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 centre strategy.
“Talen is well-positioned to support Amazon’s energy needs as it invests further in the Commonwealth of Pennsylvania.”
The collaboration will also explore opportunities for constructing small modular reactors (SMRs) within Talen’s regional footprint.
The partnership will also focus on enhancing the output of the existing Susquehanna facility through uprates that could contribute additional net new energy into the PJM grid.
AWS Global Data Centers vice-president Kevin Miller stated: “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 – $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.”
The collaboration ensures continued operation of the Susquehanna plant, preserving its economic contributions locally and sustaining more than 900 jobs at the site and additional construction employment opportunities.
In November 2024, the US Federal Energy Regulatory Commission (FERC) rejected an amended interconnection service agreement that aimed to enhance the load capacity of Amazon’s data centre located at the Susquehanna nuclear facility.
FERC expressed concerns regarding the potential impact of the agreement on the public, as the increased capacity of the data centre could result in higher electricity bills and compromise the reliability of the grid.
