After the regulatory agency's rejection, Amazon still pursues the nuclear power deal
After the U.S. top energy regulatory agency rejected a special agreement to supply power to its data centers, Amazon still plans to build a data center park near a nuclear power plant in Pennsylvania. Although the Federal Energy Regulatory Commission denied Talen Energy's request, Amazon stated it will continue to work with Talen to advance carbon-free energy solutions. The project is expected to invest $650 million and build 960 megawatts of generating capacity, directly powered by the nuclear power plant
According to Zhitong Finance APP, after the U.S. Supreme Energy Regulatory Agency rejected a special agreement to supply power to the facility, Amazon (AMZN.US) stated that it is committed to building a data center park near a nuclear power plant in Pennsylvania.
The U.S. Federal Energy Regulatory Commission rejected Talen Energy's (TLN.US) request last Friday to increase the power supply from its nuclear power plant to Amazon Web Services data centers. The stock price of the U.S. power producer fell as investors believed the Federal Energy Regulatory Commission's ruling would hinder large tech companies' efforts to quickly obtain nuclear power to supply their growing data centers.
Amazon spokesperson Duncan Neasham stated on Monday, "We remain committed to working with companies like Talen Energy to continue innovating and advancing carbon-free energy solutions to power our data center operations in the U.S. and support the many technologies that our customers and daily lives rely on." Neasham confirmed that the company intends to continue advancing the Talen project.
In March of this year, Talen announced that Amazon's cloud computing division would invest $650 million to build a data center park with a generating capacity of 960 megawatts near Talen's Susquehanna nuclear power plant.
Under the agreement, the data center park will be powered directly by the plant, meaning Amazon does not have to connect to the broader power grid or fund related transmission upgrades. Some utility owners have questioned this move, stating it could threaten grid reliability and increase electricity costs. Talen Energy had previously obtained the right to provide up to 300 megawatts of power to the facility in this manner. This authorization is not affected by the Federal Energy Regulatory Commission's ruling.
Amazon and other large cloud computing companies are in urgent need of power to support their growing businesses while pursuing public goals to reduce reliance on fossil fuels, and thus have sought agreements with nuclear power plant operators