Amazon (AMZN) is becoming a member of different massive tech corporations in buying energy from present nuclear energy services, following Meta and Microsoft. The tech firm will energy a bit of its AWS cloud and AI servers utilizing 1.92 gigawatts of electrical energy from Talen Power’s Susquehanna nuclear energy plant in Pennsylvania, in response to a report. The deal isn’t new, as it’s a modification of an present take care of Talen from Fall 2024.
The AWS knowledge heart shall be billed like different comparable clients who’re grid-connected. The transmission strains shall be reconfigured in spring of 2026, Talen mentioned, and the deal covers vitality bought via 2042. Moreover, the 2 corporations additionally mentioned they may look to construct small modular reactors “inside Talen’s Pennsylvania footprint” and broaden technology at present nuclear energy vegetation.
Amazon Continues New Efforts to Increase AWS Cloud Servers
Amazon has begun making a number of investments of late to bolster its Amazon Internet Companies capabilities. In latest weeks, the corporate has pledged to aggressively broaden its knowledge heart footprint, together with roughly $30 billion in whole investments for knowledge facilities throughout Pennsylvania and North Carolina. Amazon has already put aside as much as $100 billion this yr on capital expenditures, with the vast majority of the shares going to AI-related initiatives.
Increasing present energy vegetation is usually a better approach so as to add new nuclear assets. Microsoft started doing this final yr with Constellation Power, and Meta adopted swimsuit earlier this month with Constellation. New technology at present reactors and new SMRs are meant “so as to add net-new vitality to the PJM grid,” Talen mentioned in a press release, referring to the area’s grid operator. That final bit is probably going a bid to move off any criticism from regulators about leaving ratepayers holding the bag.
Because the cloud business continues to warmth up within the face of large AI demand, Amazon continues to move the cost and spend money on additional infrastructure. Buyers have responded positively to Amazon’s efforts in enlargement, but AMZN inventory is down 3% year-to-date. Nonetheless, most of that drop got here following sweeping tariff threats again in April. Now, AMZN is again up 1% within the final 30 days.
