Amazon (AMZN) is joining other big tech firms in purchasing power from existing nuclear power facilities, following Meta and Microsoft. The tech company will power a chunk of its AWS cloud and AI servers using 1.92 gigawatts of electricity from Talen Energy’s Susquehanna nuclear power plant in Pennsylvania, according to a report. The deal isn’t new, as it is a modification of an existing deal with Talen from Fall 2024.
The AWS data center will be billed like other similar customers who are grid-connected. The transmission lines will be reconfigured in spring of 2026, Talen said, and the deal covers energy purchased through 2042. Additionally, the two companies also said they will look to build small modular reactors “within Talen’s Pennsylvania footprint” and expand generation at existing nuclear power plants.
Amazon Continues New Efforts to Expand AWS Cloud Servers
Amazon has begun making several investments of late to bolster its Amazon Web Services capabilities. In recent weeks, the company has pledged to aggressively expand its data center footprint, including approximately $30 billion in total investments for data centers across Pennsylvania and North Carolina. Amazon has already set aside up to $100 billion this year on capital expenditures, with the majority of the shares going to AI-related projects.
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Expanding existing power plants is typically an easier way to add new nuclear resources. Microsoft began doing this last year with Constellation Energy, and Meta followed suit earlier this month with Constellation. New generation at existing reactors and new SMRs are intended “to add net-new energy to the PJM grid,” Talen said in a statement, referring to the region’s grid operator. That last bit is likely a bid to head off any criticism from regulators about leaving ratepayers holding the bag.
As the cloud industry continues to heat up in the face of massive AI demand, Amazon continues to head the charge and invest in further infrastructure. Investors have responded positively to Amazon’s efforts in expansion, yet AMZN stock is down 3% year-to-date. However, most of that drop came following sweeping tariff threats back in April. Now, AMZN is back up 1% in the last 30 days.
