Amazon Signs Nuclear Energy Deal for AI Centers

Amazon has signed a significant agreement with Talen Energy, securing 1,920 megawatts (MW) of nuclear energy to power its web servers and AI data centers in Pennsylvania, extending through 2042. This arrangement marks a pivotal step in Amazon’s strategy to meet the energy-intensive demands associated with artificial intelligence.

The energy will be produced at Talen’s Susquehanna nuclear plant and will support Amazon facilities via the regional power grid, rather than direct supply from the plant as initially intended. This setup also includes a provision for exploring small-modular nuclear reactor (SMR) technology, reflecting the company’s forward-thinking approach to energy solutions.

As part of this deal, PPL Electric Utilities will facilitate the transmission of power to Amazon. Christine Martin, the president of PPL Electric Utilities, noted that connecting large-scale data centers to their transmission grid is beneficial for all consumers, as these major clients help mitigate overall transmission costs.

The increasing reliance on nuclear energy underscores the escalating demand for robust energy infrastructure to support artificial intelligence and high-performance computing amid rising global energy needs. This trend has resonated with other tech giants as well, showcasing a collective shift towards cleaner energy sources.

Following Amazon’s lead, Microsoft also announced a nuclear power deal with Constellation Energy Corporation to leverage energy from the Three-Mile Island site, aiming to supply 835 megawatts to its AI data centers with plans to operationalize the facility by 2028. Similarly, Meta has entered an agreement to acquire 1.1 gigawatts of nuclear power from Constellation over the next 20 years to fuel its AI operations.

These developments reflect a broader movement within the tech industry towards nuclear power amid support from U.S. lawmakers and political leaders. Calls from figures such as former President Donald Trump emphasize the need to invest in nuclear energy to support not only AI but also cryptocurrency mining and other intensive computational tasks.

The strategic pivot to nuclear energy showcases a dual commitment: addressing the pressing energy requirements of advanced technologies while also moving towards more sustainable energy practices. As AI technologies continue to evolve, the role of nuclear power in this equation is set to grow, making this trend a significant area to watch.