Amazon Powers AWS Cloud with Nuclear Energy

Amazon Powers AWS Cloud with Nuclear Energy

Amazon has formalized an adjusted power purchase agreement with Talen Energy to supply 1.92 gigawatts of electricity from the Susquehanna nuclear plant in Pennsylvania. This shift from a behind-the-meter arrangement to a front-of-meter model brings AWS in line with grid-connected customers, including transmission fees, and addresses previous regulatory roadblocks.

This move follows similar deals by Microsoft and Meta, as hyperscalers seek direct partnerships with nuclear operators to secure reliable, carbon-free power for cloud services and AI workloads.

Old vs New Power Purchase Approach

Initially, Amazon planned to build a data center adjacent to Susquehanna, pulling power directly from the plant and bypassing grid fees. Regulators halted that plan over concerns about shifting grid maintenance costs unfairly onto other ratepayers.

Under the revised agreement, Susquehanna feeds power into the regional PJM grid, and AWS draws electricity like any other customer. Transmission lines will be reconfigured by spring 2026, and the contract runs through 2042.

Exploring Small Modular Reactors and Plant Upgrades

Beyond this PPA, Amazon and Talen will explore small modular reactors (SMRs) within Talen’s Pennsylvania footprint. SMRs promise modular, cost-effective nuclear capacity through standardized, factory-produced components.

The companies also plan to boost output at existing reactors by investing in higher-enriched fuel, turbine upgrades, and operational tweaks—strategies that often yield quick capacity gains compared to new builds.

Amazon has backed SMR startup X-energy, which aims to add 300 MW of nuclear generation in the Pacific Northwest and Virginia. Such investments could help hyperscalers secure firm, low-carbon power while supporting grid resilience.

Implications for Cloud Infrastructure

For AWS and other cloud providers, direct nuclear deals offer stable pricing, long-term supply security, and lower carbon footprints. Partnering with nuclear operators also mitigates the volatility of renewable sources and power markets.

However, projects of this scale face regulatory scrutiny and require careful grid impact assessments. By moving front-of-meter and promising net-new generation on the PJM grid, Amazon and Talen are proactively addressing these challenges.

As energy demand from data centers and AI servers skyrockets, organizations need strategic insights into sustainable procurement. By combining technical analysis, regulatory expertise, and market modeling, QuarkyByte helps clients design robust, low-carbon energy portfolios.