Amazon secures a 1.9 gigawatt nuclear energy agreement for powering data centers.
Amazon and Talen Energy Partner to Bolster Pennsylvania's Nuclear Energy Output
In a significant move towards sustainable energy, Amazon and Talen Energy have entered a long-term Purchase Power Agreement (PPA) for 1.9 GW of energy from Talen's Pennsylvania-based Susquehanna nuclear power plant. This partnership aims to power Amazon Web Services (AWS) data centers in the region, marking a significant step in Amazon's mission to achieve net-zero emissions by 2040.
The agreement provides Talen with a long-term, steady source of revenue and greater balance sheet flexibility. Talen and Amazon will explore building new Small Modular Reactors (SMRs) in Pennsylvania, aligning with Amazon's commitment to next-generation nuclear technologies.
Amazon's foray into nuclear energy extends beyond its existing renewable energy commitments. The company has committed over $500 million to the development and deployment of SMRs, which offer flexible, scalable, and low-carbon energy with faster construction and lower capital costs compared to traditional nuclear plants.
This partnership complements Amazon's continued investments in utility-scale renewables like wind and solar, reflecting a diversified approach to achieving sustainable energy goals. The delivery schedule for the energy will ramp over time, reaching full volume by 2032.
Amazon's strategy indicates a commitment to integrating nuclear energy as a foundational carbon-free power source to sustain the heavy and growing electricity needs of AI technologies and data centers. AWS Vice President, Kevin Miller, stated that Amazon plans to invest $20B in Pennsylvania, creating 1,250 high-skilled jobs and bringing economic benefits to the state.
The investment is aimed at advancing Pennsylvania's AI innovation and infrastructure. AWS will leverage AI and cloud technology partnerships to innovate nuclear reactor safety, efficiency, and autonomy. Amazon is partnering with utility companies and national labs on advanced nuclear projects, including collaborations with Energy Northwest, Dominion Energy, and Idaho National Laboratory.
Talen intends to continue executing on its data center strategy and is well-positioned to support Amazon's energy needs as it invests further in the Commonwealth of Pennsylvania. This investment will help power Amazon's infrastructure with carbon-free energy, aligning with Amazon's pledge to match all of its electricity consumption with 100% renewable energy by 2030, a goal achieved 7 years ahead of schedule in July 2024.
The partnership between Amazon and Talen Energy is an expansion of their existing relationship, which includes a previous deal for Talen to power a data center facility next to its nuclear facility in Pennsylvania. Amazon's recent investment of over $1 billion in nuclear energy projects and technologies over the past year further underscores its commitment to sustainable energy.
This investment in Pennsylvania's nuclear energy sector positions nuclear energy as a critical component of Amazon's energy strategy to support rapid AI growth sustainably while advancing the U.S. nuclear industry and grid modernization efforts.
- Beyond its renewable energy investments, Amazon is also delving into the nuclear energy industry, having committed over $500 million towards the development and deployment of Small Modular Reactors (SMRs).
- The partnership between Amazon and Talen Energy is not limited to nuclear energy; they are also exploring the possibility of building new Small Modular Reactors (SMRs) in Pennsylvania, aligning with Amazon's commitment to next-generation nuclear technologies.
