SEATTLE (dpa-AFX) - Talen Energy Corporation (TLN), on Wednesday announced it has expanded its nuclear energy agreement with Amazon through a new long-term power purchase agreement or PPA to provide up to 1,920 megawatts of carbon-free electricity from its Susquehanna nuclear power plant.
The clean energy will support Amazon Web Services or AWS data centers in Pennsylvania, including operations focused on artificial intelligence or AI and cloud technologies.
Under the terms of the agreement, Talen will supply carbon-free power to Amazon through 2042, with an option to extend.
The delivery will gradually ramp up and is expected to reach full volume no later than 2032, with the potential to accelerate.
The arrangement transitions from a behind-the-meter to a front-of-the-meter setup following a planned 2026 transmission reconfiguration, during Susquehanna's next refueling outage.
In addition to supplying nuclear energy, Talen and Amazon plan to explore deploying Small Modular Reactors or SMRs within Talen's Pennsylvania footprint.
They will also evaluate opportunities to increase Susquehanna's energy output via uprates, aimed at delivering new energy capacity to the PJM grid.
The partnership aligns with Amazon's ongoing $20 billion investment in Pennsylvania, the largest private sector investment in state history, which includes building a large-scale data center campus and creating over 1,200 high-skilled jobs.
The expanded nuclear PPA provides Talen with predictable, long-term revenue and reduces its reliance on federal nuclear tax credits.
Talen's CEO Mac McFarland emphasized the strategic value of the agreement in supporting the company's energy and data center growth strategy.
AWS Vice President Kevin Miller highlighted the collaboration as part of Amazon's commitment to powering its infrastructure with carbon-free energy and advancing economic development in the Commonwealth.
The project also received support from Pennsylvania Governor Josh Shapiro, U.S. Senator Dave McCormick, Representative Dan Meuser, and IBEW Local 1600, citing its benefits for energy innovation, job creation, and state infrastructure.
The long-term agreement secures over 900 existing jobs at the Susquehanna plant and is expected to generate additional construction and skilled labor opportunities.
It also signals broader investments in energy grid modernization and sustainable power generation in Pennsylvania.
Currently, TLN is trading at $273.34, up by 7.56 percent on the Nasdaq.
Currently, AMZN is trading at $2.16.78, down by 0.36 percent on the Nasdaq.
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