Amazon Taps Nuclear Power to Fuel AI Data Centers Until 2042

The agreement also includes exploring small-modular reactor (SMR) technology, while Amazon’s service fees will support grid maintenance and energy infrastructure development in the region.


In a bold move to support its expanding AI and cloud computing operations, Amazon has signed a landmark energy agreement with Talen Energy to source 1,920 megawatts (MW) of nuclear power through the year 2042. The deal marks a significant step in Amazon’s energy strategy, aligning with its sustainability goals while ensuring a reliable power supply for its AI data centers and Amazon Web Services (AWS) infrastructure in Pennsylvania.

The electricity will be provided by Talen’s Susquehanna nuclear facility, one of the largest nuclear plants in the U.S., but unlike traditional direct supply agreements, the power will be delivered via the regional energy grid. This approach not only simplifies logistics but also helps stabilize and support the broader power infrastructure through service fees paid by Amazon.

Under the agreement, PPL Electric Utilities, an energy transmission company, will deliver the power to Amazon. Christine Martin, President of PPL Electric Utilities, said, “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.”

The tech giant’s decision comes amid rising energy demands driven by AI workloads, which require immense computing power and continuous uptime. With this move, Amazon is clearly doubling down on nuclear energy for AI, a clean, stable alternative to fossil fuels and an increasingly viable option in the era of large-scale machine learning and data processing.

In addition to the core agreement, Amazon and Talen plan to explore small-modular reactor (SMR) technology—a next-gen nuclear solution known for its scalability, lower costs, and safety enhancements. This positions Amazon at the forefront of innovation in clean energy adoption within the tech sector.

The Amazon energy deal not only underscores the company’s ambition to lead in sustainable computing but also reflects a growing industry trend of pairing advanced technologies like AI with long-term renewable and nuclear energy solutions to ensure scalability and resilience.