(Bloomberg) — Amazon.com Inc. has expressed its commitment to establishing a data center campus near a nuclear facility in Pennsylvania, even after the leading U.S. energy regulator denied a particular agreement that would have allowed for enhanced power supply to this site.
The Federal Energy Regulatory Commission did not approve a proposal from Talen Energy Corp. on Friday, which aimed to increase power provisions from its nuclear plant to the Amazon Web Services data center. Following this decision, shares of U.S. power companies experienced a decline as investors speculated that the FERC ruling might hinder major tech firms’ pursuits for faster access to nuclear energy for their expanding data centers.
“We remain committed to continue innovating and advancing carbon-free energy solutions with companies like Talen Energy to power data center operations in the United States and the many technologies supporting our customers and our daily lives,” said Duncan Neasham, a spokesperson for Amazon, in an email on Monday. He confirmed via phone that the company plans to proceed with the Talen initiative.
Talen had announced in March that Amazon’s cloud division would invest $650 million in a data center campus capable of generating up to 960 megawatts next to Talen’s Susquehanna nuclear facility. On Tuesday, following Amazon’s reaffirmation of support for the project, Talen shares rose by as much as 9.8% to $186.64, while Amazon’s stock saw a modest increase of about 1%.
Under the agreement, the data center campus would be supplied directly by the plant, which means Amazon would not need to connect to the broader electrical grid or invest in associated transmission improvements. Some utility owners raised concerns about this arrangement, arguing it might compromise grid reliability and potentially increase costs. Talen had already obtained the rights to deliver up to 300 megawatts to the facility in this way. This authorization remains unchanged by FERC’s decision.
Amazon, along with other large cloud-computing providers, is in urgent need of power to support their expanding operations while striving to fulfill their public commitments to lessen dependency on fossil fuels. Consequently, they have been pursuing agreements with operators of nuclear power facilities.
Welcome to DediRock, your trusted partner in high-performance hosting solutions. At DediRock, we specialize in providing dedicated servers, VPS hosting, and cloud services tailored to meet the unique needs of businesses and individuals alike. Our mission is to deliver reliable, scalable, and secure hosting solutions that empower our clients to achieve their digital goals. With a commitment to exceptional customer support, cutting-edge technology, and robust infrastructure, DediRock stands out as a leader in the hosting industry. Join us and experience the difference that dedicated service and unwavering reliability can make for your online presence. Launch our website.