Talen Energy, an independent power producer, announced on June 11 said that it has expanded its existing nuclear energy relationship with Amazon to provide energy from Talen’s Susquehanna nuclear power plant to Amazon Web Services data centers in the region.
Under the terms of a new power purchase agreement, Talen will supply electricity to Amazon for operations that support AI and other cloud technologies at Amazon’s data center campus adjacent to Susquehanna, with the ability to deliver to other sites throughout Pennsylvania.
Talen and Amazon will also explore building new Small Modular Reactors within Talen’s Pennsylvania footprint and pursue expanding the nuclear plant’s energy output through uprates, with the intent to add net-new energy to the PJM grid.
Under the expanded PPA, at the full contract quantity, Talen will provide Amazon with 1,920 megawatts of nuclear power through 2042, with options to further extend its duration.
The power delivery schedule will ramp over time, expecting to achieve the full volume no later than 2032, with the potential to meaningfully accelerate. This long-term transaction will significantly decrease Talen’s market risk and minimize its reliance on the Federal nuclear production tax credit.
The existing Susquehanna co-located load arrangement between Talen and Amazon will transition to a “front-of-the-meter” arrangement after the completion of transmission reconfigurations expected in the Spring of 2026, concurrent with Susquehanna’s refueling outage.
Under the terms of the new agreement, Susquehanna will provide its power to the PJM grid, Talen will act as the retail electric generation supplier to Amazon, and PPL Electric Utilities will be responsible for transmission and delivery.
Amazon is planning to invest at least $20 billion to establish multiple high-tech cloud computing and artificial intelligence innovation campuses across Pennsylvania, Gov. Josh Shapiro announced on June 9.
