As the demand for clean and reliable energy grows, tech giants are exploring new ways to power their expanding infrastructure.
A New Era of Energy Procurement in Tech
Amazon has entered the growing trend of tech giants directly sourcing energy from nuclear power plants. This strategic move aims to support the company’s rapidly expanding AWS cloud and AI infrastructure with reliable, carbon-free power.
Powering AWS with Nuclear Energy
Amazon will now source 1.92 gigawatts of electricity from Talen Energy’s Susquehanna nuclear power plant in Pennsylvania. This makes Amazon the latest hyperscaler to embrace nuclear energy, following the likes of Microsoft and Meta.
Reworking an Earlier Arrangement
The deal, announced this week, is not entirely new. It modifies a previous agreement in which Amazon planned to build a data center adjacent to the Susquehanna plant and draw electricity directly from it—bypassing the public grid.
That arrangement was ultimately blocked by regulators due to concerns about fairness. Customers not benefiting from the deal would still have to pay for grid maintenance and development. The revised agreement now ensures that electricity will flow through the public grid, including standard transmission fees.
From Behind-the-Meter to Grid-Connected
The updated power purchase agreement shifts Amazon’s setup to “in front of the meter,” aligning its AWS data center with standard customer practices. Transmission infrastructure will be reconfigured by spring 2026, and the deal will last until 2042.
Beyond the Deal: Future Nuclear Projects
Amazon and Talen have also committed to exploring the deployment of small modular reactors (SMRs) within Talen’s Pennsylvania footprint. They also plan to increase generation at existing nuclear sites.
Expanding existing reactors typically involves measures like using more enriched fuel, optimizing thermal efficiency, or upgrading turbines to boost output.
Following the Trendsetters: Microsoft and Meta
Microsoft ignited the trend in 2024 with a $1.6 billion plan to restart a reactor at Three Mile Island with Constellation Energy, aiming to generate 835 megawatts. Meta followed suit in early 2025 by purchasing clean energy attributes from a 1.1 GW nuclear plant in Illinois.
Amazon’s Bet on Small Modular Reactors
Amazon’s ambition extends to building new SMRs, a more speculative endeavor. Nevertheless, it’s aligned with broader industry momentum. Amazon has invested in X-energy, an SMR startup developing a 300-megawatt capacity in the Pacific Northwest and Virginia.
Net-New Energy for the PJM Grid
Talen confirmed that all future generation—whether from upgraded plants or new SMRs—will contribute net-new energy to the PJM grid, which serves much of the Eastern U.S. This statement is likely meant to preempt regulatory concerns about market fairness and grid cost distribution.
