The long-term deal is expected to reduce market risks for Talen and minimise its dependence on federal tax credits associated with nuclear production.
The PPA commits Talen to delivering up to 1.92MW of nuclear power through 2042, with options to extend. Power delivery will ramp up gradually, reaching full capacity by 2032. The current co-located arrangement will shift to a front-of-the-meter system after transmission upgrades, expected to be completed around spring 2026. This will enable Susquehanna’s carbon-free electricity to feed directly into the PJM grid, serving Pennsylvania, New Jersey, and Maryland. Talen will serve as Amazon’s retail electric supplier, with PPL Electric Utilities handling transmission and delivery.
This long-term agreement is anticipated to stabilize Talen’s revenue and reduce its dependence on federal tax credits for nuclear production. Talen’s president and CEO, Mac McFarland, stated: “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.” He added: “Talen is well-positioned to support Amazon’s energy needs as it invests further in the Commonwealth of Pennsylvania.”
The partnership will also investigate the development of small modular reactors (SMRs) within Talen’s regional operations and explore upgrades to enhance the Susquehanna facility’s output, contributing additional clean energy to the PJM grid. AWS Global Data Centers vice-president Kevin Miller said: “Amazon is proud to help Pennsylvania advance AI innovation through investments in the Commonwealth’s economic and energy future.” He noted: “That’s why we’re making the largest private sector investment in state history – $20bn – 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 collaboration supports the ongoing operation of the Susquehanna plant, maintaining over 900 jobs at the site and creating further construction opportunities. In November 2024, the U.S. Federal Energy Regulatory Commission rejected a proposed amendment to increase the load capacity of Amazon’s data center at Susquehanna, citing concerns about potential impacts on electricity costs and grid reliability.
This agreement enhances Pennsylvania’s clean energy landscape and economic growth, supporting Amazon’s data center expansion with sustainable power and fostering job creation.
