Amazon Web Services (AWS) has signed a long-term deal with Talen Energy to receive up to 1,920 megawatts of electricity from the Susquehanna nuclear plant in Pennsylvania.

The agreement runs through 2042 and supports AWS’s growing need for carbon-free energy to power its AI and cloud operations.

The project includes a US$20 billion investment and is expected to create 1,250 high-skilled jobs in Pennsylvania.

The partnership will also explore the potential construction of Small Modular Reactors (SMRs) and the possibility of increasing the plant’s electricity output.

Talen Energy’s shares rose nearly 8% in premarket trading after the announcement.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Data center power demand is forcing tech giants toward nuclear solutions

The Talen-Amazon deal reflects the immense power demands from AI and cloud computing that are reshaping the energy landscape.

Goldman Sachs projects a staggering 165% increase in data center power consumption by 2030, with AI workloads growing from 14% to 27% of that demand 1.

McKinsey research indicates data centers currently consume 3-4% of total U.S. electricity but could reach 11-12% by 2030, requiring over $500 billion in power infrastructure investments 2.

This explains why tech companies are seeking long-term contracts with nuclear providers. They need massive amounts of reliable, carbon-free power that renewables alone cannot deliver consistently.

The Department of Energy anticipates data centers could consume up to 9% of U.S. electricity generation by 2030, up from 4% in 2023, creating unprecedented pressure on the grid 3.

2️⃣ Tech companies are leading a corporate nuclear renaissance

The Talen-Amazon partnership represents a broader strategic pivot happening across Big Tech toward nuclear energy.

Amazon, Google, and Meta have collectively pledged to triple global nuclear capacity by 2050, signaling a fundamental shift in corporate energy strategy beyond just renewable investments 4.