Regulators reject Amazon's plan to expand capacity at nuclear power plant-linked data center
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Amazon's data center in Pennsylvania is directly connected to Talen Energy's Susquehanna Nuclear Power Plant and has a 10-year power purchase agreement. However, due to rising electricity consumption, Talen Energy and Amazon had sought to amend the contract to expand capacity. It has now been revealed that the Federal Energy Regulatory Commission (FERC) has rejected the proposal.
ER24-2172 | PJM's Susquehanna Co-Location Proposal | Federal Energy Regulatory Commission
https://www.ferc.gov/media/er24-2172-pjms-susquehanna-co-location-proposal
US regulators reject amended interconnect agreement for Amazon data center | Reuters
FERC Blocks PJM Proposal to Expand Amazon Data Center Load at Susquehanna Nuclear Plant
https://www.powermag.com/ferc-blocks-pjm-proposal-to-expand-amazon-data-center-load-at-susquehanna-nuclear-plant/
The data center directly connected to the Susquehanna Nuclear Power Plant was originally owned by Talen Energy, but was sold to Amazon's AWS for $650 million in March 2024. In connection with the sale, Talen Energy and Amazon signed a 10-year power purchase agreement.
US sells data center directly connected to nuclear power plant to Amazon subsidiary | Nuclear Industry News
https://www.jaif.or.jp/journal/oversea/22198.html
However, demand for data centers is growing for AI applications and other purposes, and Talen Energy and Amazon have requested an increase in available capacity, meaning an expansion of the power supply from the Susquehanna Nuclear Power Plant from 300 MW to 480 MW.
FERC voted 2-1 to deny the expansion, with Commissioner Mark Christie stating that the move 'could have significant impacts on both grid reliability and consumer costs.'
Talen Energy, on the other hand, issued a statement condemning FERC, saying the contract review was legitimate, reasonable and in the best interest of consumers, and that FERC's decision will have a dire impact on the economic development of states such as Pennsylvania, Ohio and New Jersey.
Talen Energy Statement on FERC Order Rejecting Susquehanna ISA | Sun, 11/03/2024 - 19:00
https://ir.talenenergy.com/news-releases/news-release-details/talen-energy-statement-ferc-order-rejecting-susquehanna-isa
Amazon had planned to build the data center at a maximum capacity of 960MW from the time of acquisition, with the minimum contracted power to be increased by 120MW over multiple years, but with a one-time option to limit the contract to 480MW if Amazon determined it did not need the maximum power.
AWS Eyes 960 MW for Newly Acquired Nuclear Power Data Center in Pennsylvania | Data Center Frontier
https://www.datacenterfrontier.com/hyperscale/article/33038288/aws-eyes-960-mw-for-newly-acquired-nuclear-power-data-center-in-pennsylvania
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