Amazon secures long-term nuclear power supply for AWS data centers in Pennsylvania

Amazon has finalized a major long-term agreement with Talen Energy to purchase 1.92 gigawatts of electricity from the Susquehanna nuclear power plant in Pennsylvania. This arrangement ensures that a significant portion of Amazon Web Services’ cloud and AI infrastructure will be powered by carbon-free nuclear energy through 2042. The deal marks a significant shift from an earlier plan, which would have seen Amazon build a data center directly adjacent to the plant and draw power without routing it through the grid, a proposal that regulators rejected due to concerns about grid maintenance costs being unfairly borne by other customers. Under the revised agreement, Amazon will now receive power through the grid, paying standard transmission fees that support grid upkeep and development. The transmission lines are expected to be reconfigured in spring 2026 to accommodate this new arrangement. Beyond the immediate supply agreement, Amazon and Talen have also pledged to explore the development of small modular reactors (SMRs) within Talen’s Pennsylvania footprint and to expand generation at existing nuclear plants. These efforts aim to add new, reliable, and sustainable energy to the regional grid—particularly valuable as demand surges due to the rapid growth of data centers and AI. Amazon’s move follows similar initiatives by Microsoft and Meta, signaling a broader trend among tech giants to secure stable, carbon-free energy sources to support their expanding digital infrastructure. The company has also invested in SMR startup X-energy, which is planning to add 300 megawatts of nuclear capacity in the Pacific Northwest and Virginia. This strategy underscores the importance of nuclear power in meeting the immense and growing energy needs of cloud computing and artificial intelligence, while also supporting Amazon’s broader sustainability goals.