U.S.-based Talen Energy has signed a major long-term agreement with Amazon to deliver 1,920 megawatts of carbon-free nuclear electricity to support Amazon Web Services (AWS) operations across Pennsylvania. The electricity will come from Talen’s Susquehanna nuclear power station, ensuring clean and reliable power for AWS’s growing AI and cloud infrastructure.
The press release announced a new power purchase agreement (PPA) on June 11, 2025. This deal greatly expands the partnership between Talen and Amazon. It is one of the largest clean energy contracts, providing Amazon with zero-emission electricity through 2042, with an option to extend. Full delivery of the power is expected by 2032, but Talen and Amazon hope to speed up that timeline.
Talen President and Chief Executive Officer Mac McFarland
“Our agreement with Amazon is designed to provide us with a long-term, steady source of revenue and greater balance sheet flexibility through contracted revenues. We remain a first mover in this space and intend to continue to execute on our data center strategy. Talen is well-positioned to support Amazon’s energy needs as it invests further in the Commonwealth of Pennsylvania.”
Talen Energy is Supporting Amazon’s AI Growth with Clean Power
The company has a diversified 10.7 GW power portfolio. The company delivers electricity, capacity, and ancillary services to wholesale markets. It also pioneers the production of safe, reliable, and clean energy for digital infrastructure and data centers using a mix of nuclear and dispatchable fossil fuel assets.
- Notably, Susquehanna is one of the lowest-cost and best-operated nuclear plants in the nation.
The PPA will help Amazon meet the soaring power demands of its AI and cloud computing platforms. The carbon-free energy will primarily serve a data center campus located next to the Susquehanna plant, with the potential to reach other AWS sites across Pennsylvania.
The Susquehanna facility will supply energy to the PJM grid, with Talen acting as the retail supplier to Amazon.
- After the plant’s Spring 2026 refueling outage, transmission reconfiguration will finish.
- Then, the current load arrangement will change to a “front-of-the-meter” model.
- PPL Electric Utilities will manage transmission and delivery.
Why Nuclear is Amazon’s Best Bet for Carbon-Free Growth?
As the energy sector rapidly evolves, Amazon Web Services (AWS) is stepping up with scalable cloud solutions. AWS helps utilities boost efficiency, integrate renewables, and manage distributed energy systems, all while cutting emissions and modernizing outdated infrastructure.
AWS accelerates clean energy goals through partnerships with leaders like Duke Energy and GE Vernova, enabling smarter grid management.
A key benefit of Amazon’s partnership with Talen Energy is access to carbon-free nuclear power. Unlike fossil fuels, nuclear energy generates zero greenhouse gas emissions during operation, making it a strong fit for powering high-demand services like AI and cloud computing.
Kevin Miller, AWS Vice President of Global Data Centers, highlighted Amazon’s broader commitment to Pennsylvania, stating:
“Amazon is proud to help Pennsylvania advance AI innovation through investments in the Commonwealth’s economic and energy future. That’s why we’re making the largest private sector investment in state history – $20B – to bring 1,250 high-skilled jobs and economic benefits to the state, while also collaborating with Talen Energy to help power our infrastructure with carbon-free energy.”
The retail giant is adding nuclear power to supply carbon-free energy to AWS data centers and is investing over $52 billion across three U.S. states as part of its massive data center expansion.
The company has entered into three major agreements to explore and develop SMRs, viewing them as a scalable and dependable solution to meet rising data energy demands.
- In 2023, Amazon’s carbon footprint was nearly 69 million metric tons of CO2, lower than its 2021 peak but still significant.
This reliable, clean energy source can help Amazon cut its carbon footprint while maintaining the performance needed to support its rapidly growing AWS infrastructure.
Amazon and Talen are Jointly Exploring SMRs and Nuclear Output Expansion
Beyond the current deal, Amazon and Talen will jointly explore the development of Small Modular Reactors (SMRs) on Talen’s Pennsylvania sites. The companies are also considering uprates at Susquehanna to expand generation capacity, to contribute net-new energy to the PJM grid.
These efforts would not only boost clean energy availability but also send strong market signals encouraging investment in Pennsylvania’s grid modernization and new generation infrastructure.
Stabilizing Revenue and Reducing Risk
For Talen, the PPA brings more than just a steady revenue stream. It substantially reduces exposure to volatile wholesale markets and lessens the company’s reliance on the federal nuclear production tax credit.
Talen operates 12 generation sites across the U.S., with a total capacity of about 10.7 gigawatts. Its portfolio includes 2.2 GW of nuclear capacity and a mix of fossil fuel assets, mainly in the Mid-Atlantic and Montana.
Boosting Local Jobs and Pennsylvania’s Energy Future
The agreement ensures continued operation of the Susquehanna plant, securing over 900 existing jobs and creating new roles tied to construction and energy infrastructure. The project is expected to deliver economic benefits while strengthening Pennsylvania’s role as a key energy exporter.
Christine Martin, President of PPL Electric Utilities, noted,
“PPL Electric Utilities is investing in the resiliency of its transmission system so we can better serve our customers, meet growing energy demands, and ensure power is delivered reliably. Connecting large load customers like data centers to our transmission system helps lower the transmission component of energy bills for all customers, as large load customers pay significant transmission charges on our network. We’re excited to be part of Amazon’s broader investment in Pennsylvania and look forward to the positive effects it can have for our customers and the local economy.”
Key leaders have voiced their support for the deal, including Pennsylvania Governor Josh Shapiro, U.S. Senator Dave McCormick (R-PA), and U.S. Representative Dan Meuser (R-PA), who represents the state’s 9th Congressional District. Their backing highlights the importance of this partnership for Pennsylvania’s energy future and economic growth.
Driving Clean Energy and Grid Resilience
The Talen-Amazon partnership is a powerful endorsement of nuclear power’s role in enabling decarbonization and digital transformation. With AI workloads driving exponential increases in power demand, this deal positions nuclear energy as a stable, zero-carbon solution for meeting that need.
As Pennsylvania continues to export more power than it consumes, agreements like this help sustain energy leadership while fostering new investment and grid resilience. By advancing carbon-free generation, Talen and Amazon are pushing forward a more sustainable and innovation-ready energy future.
