Amazon Web Services has signed a major deal with Talen Energy to secure up to 1,920 megawatts of nuclear energy from the Susquehanna plant in Pennsylvania, with deliveries starting in 2026 and ramping up until 2032. The contract, running through 2042, ensures a stable and carbon-free electricity source to support Amazon’s expanding AI and cloud operations, while also offering Talen a predictable long-term revenue stream.
Initially, Amazon proposed a behind-the-meter model to channel power directly from the nuclear plant to its data centers, bypassing the grid. However, regulatory concerns about fairness and cost redistribution led to the deal being revised. The power will now go through the public grid, meaning Amazon will pay standard transmission and distribution fees, easing opposition and aligning with infrastructure norms.
The agreement forms part of Amazon’s broader $20 billion infrastructure investment in Pennsylvania. This includes at least two data center campuses and the creation of around 1,250 high-skilled jobs. It also supports upgrades at the Susquehanna plant, potential deployment of Small Modular Reactors (SMRs), and increased nuclear capacity. The deal marks one of the largest private-sector investments in the state’s history.
Following the announcement, Talen Energy’s stock rose 8%, with other nuclear-related companies seeing smaller gains. The deal reflects a broader trend of tech giants seeking stable and clean energy sources to meet the surging power demands of AI infrastructure. Microsoft and Meta have pursued similar arrangements. With electricity demand growing for the first time in decades, nuclear power is gaining fresh momentum.
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