Amazon signs nuclear energy deal to power AI data centers

Tech company Amazon recently signed a deal with Talen Energy, a power infrastructure and provider company, for 1,920 megawatts (MW) of nuclear energy to fuel Amazon Web servers and AI data centers in Pennsylvania through the year 2042.

According to an announcement from Talen, the energy will be produced at the company's Susquehanna nuclear facility and provide power to Amazon facilities in the region, with additional plans to explore small-modular nuclear reactor (SMR) technology.

The energy will be supplied through the grid rather than directly from the nuclear plant as initially planned. This arrangement will help support the energy grid's maintenance through service fees paid by Amazon.

Projections for global nuclear energy capacity until 2050. Source: International Atomic Energy AgencyUnder the agreement, PPL Electric Utilities, an energy transmission company, will be responsible for delivering the power to Amazon. Christine Martin, president of PPL Electric Utilities, said:

“Connecting large load customers like data centers to our transmission system helps lower the transmission component of energy bills for all customers, as large load customers pay significant transmission charges on our network."

The move reflects the growing need for high-energy output infrastructure to power artificial intelligence and high-performance computing data centers as AI development becomes a key priority for global leaders.

Related: Amazon doubles down on AI with $20B Pennsylvania investment

Tech giants turn to nuclear power to fund AI ambitions

In September 2024, tech company Microsoft signed a deal with Constellation Energy Corporation to re-open the Three-Mile Island nuclear site and provide power to its AI data centers.

The 20-year deal included 835 megawatts of nuclear power delivered to the tech company, with the goal of bringing the facility online by 2028.

More recently, on June 3, social media and tech corporation Meta agreed to purchase 1.1 gigawatts of nuclear power from Constellation over 20 years to power AI facilities.

The shift toward nuclear energy generation has received support from several US lawmakers and political leaders, who urge innovation on the AI front to avoid falling behind international competitors.

United States President Donald Trump has repeatedly voiced calls to dedicate more resources to nuclear power production to meet the demands of AI, cryptocurrency mining, and other high-performance computing applications.

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