Amazon Joins Microsoft and Meta in Tapping Atomic Energy for Data Center Power
In a move to meet the soaring energy demands of its cloud computing and artificial intelligence operations, Amazon has inked a long-term deal with Talen Energy to draw almost 2 gigawatts of electricity from the Susquehanna nuclear power plant in Pennsylvania. The agreement places Amazon among a growing circle of tech giants like Microsoft and Meta turning to nuclear energy as a scalable, carbon-free solution for powering data centers.
Notably, the revised power purchase agreement, announced this week, modifies a previous arrangement that would have allowed Amazon to draw power directly from the plant through a behind-the-meter setup. This plan was scrapped after regulators raised concerns that it could enable Amazon to bypass grid-related transmission charges, shifting infrastructure costs to other users. The new structure ensures Amazon pays standard transmission charges, preserving the utility model and addressing regulatory pushback.
Data Center Energy Needs Surge
Amazon Web Services (AWS), the company’s dominant cloud arm, continues to fuel Amazon’s overall growth, driving up the demand for electricity. Amazon has already supported X-energy, a leading SMR technology firm, which is spearheading several projects, including a multi-phase deployment in Washington state that could potentially generate nearly one gigawatt of capacity.
In Virginia, Amazon is collaborating with Dominion Energy on a prospective SMR project that could deliver at least 300 megawatts of nuclear power to a region expecting an 85% surge in energy demand over the next 15 years.
