---
title: "Amazon still backs Talen nuclear deal after regulator rejection"
description: "Amazon.com Inc. said it’s committed to building a data centre campus adjacent to a Pennsylvania nuclear plant after the top US energy regulator rejected a special deal to power the facility."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "Business Maverick"
author: "Bloomberg"
author_url: "https://www.dailymaverick.co.za/author/bloomberg/"
canonical_url: "https://www.dailymaverick.co.za/article/2024-11-05-amazon-still-backs-talen-nuclear-deal-after-regulator-rejection/"
published: "2024-11-05T05:06:28"
updated: "2024-11-05T05:06:30"
lang: "en-ZA"
word_count: 278
---

# Amazon still backs Talen nuclear deal after regulator rejection

> Amazon.com Inc. said it’s committed to building a data centre campus adjacent to a Pennsylvania nuclear plant after the top US energy regulator rejected a special deal to power the facility.

By Bloomberg · Published 5 November 2024, 07:06 SAST · Updated 5 November 2024, 07:06 SAST

## Key points
- In a shocking twist worthy of a plot twist in a tech thriller, the Federal Energy Regulatory Commission has slammed the brakes on Talen Energy's ambitious nuclear power deal with Amazon, leaving investors in a tailspin and the tech giant scrambling for a backup plan to fuel its data center dreams.
- FERC rejects Talen Energy's request to boost nuclear power supply for Amazon's data centre, impacting energy access for tech giants.
- US power producers' shares tumble as investors react to the setback in nuclear energy agreements.
- Amazon remains committed to the Talen project, aiming for a $650-million data centre powered directly by the Susquehanna nuclear plant.
- The ruling does not affect Talen's existing authorization for 300 megawatts, amid ongoing demand for carbon-free energy solutions from cloud-computing firms.

## Content

The Federal Energy Regulatory Commission on Friday [voted down](https://www.bloomberg.com/news/articles/2024-11-02/us-regulator-rejects-amazon-talen-nuclear-power-agreement) a request by Talen Energy Corp. that would have increased the amount of power its nuclear plant could supply to an Amazon Web Services data centre. Shares of US power producers [slumped](https://www.bloomberg.com/news/articles/2024-11-04/us-power-stocks-slump-after-regulator-rejects-nuclear-agreement) in response, as investors bet that FERC’s ruling would set back efforts by major technology companies to gain quick access to nuclear energy to power their growing data centres.

“We remain committed to continue innovating and advancing carbon-free energy solutions with companies like Talen Energy to power data centre operations in the United States and the many technologies supporting our customers and our daily lives,” Duncan Neasham, an Amazon spokesperson, said on Monday in an email. Reached by phone, Neasham confirmed the company intends to go forward with the Talen project.

Read More: [Nuclear-Hungry AI Campuses Need New Plan to Find Power Fast](https://www.bloomberg.com/news/articles/2024-11-04/nuclear-hungry-ai-campuses-need-new-strategy-to-find-power-fast)

Talen in March had announced that Amazon’s cloud computing unit would pay $650-million for a data centre campus of as much as 960 megawatts adjacent to Talen’s Susquehanna nuclear plant.

Under the deal, the data centre campus would be powered directly by the plant, meaning Amazon wouldn’t have to plug into the wider grid or fund related transmission upgrades. Some utility owners challenged the move, saying it could threaten grid reliability and raise rates. Talen had previously secured the rights to power the facility with as much as 300 megawatts in that manner. That authorization is unaffected by FERC’s ruling.

Amazon and other big cloud-computing companies, [desperate for power](https://www.bloomberg.com/graphics/2024-ai-data-centers-power-grids/) to support their growing operations while pursuing their public goals to reduce reliance on fossil fuels, have sought agreements with operators of nuclear power plants.