Amazon pays $650 million for a nuclear-powered data centre

• Amazon Web Services (AWS) has acquired a data centre campus, Cumulus Data Assets, from Talen Energy for $650 million to power a new data centre with up to 960 megawatts of electricity directly from one of the largest nuclear power plants in the United States, located in Salem Township, Luzerne County, Pennsylvania.
• The Susquehanna Steam Electric Station, the power source, is the sixth-largest nuclear station in the U.S., operational since 1983 and producing 63 million kilowatt-hours of electricity daily.
• This deal aligns with Amazon’s commitment to using 100% clean energy for its massive AWS service requirements, demonstrating a significant move towards integrating digital infrastructure with clean power sources.

OUR TAKE
Talen Energy established Cumulus Data Assets in 2020 precisely for this reason—to integrate “digital infrastructure with clean power.”
— Chloe CHEN, BTW reporter

One of the largest nuclear power plants in the United States will directly power a new data centre for AWSAmazon Web Services, the cloud service provider. Talen Energy has sold its data centre campus, Cumulus Data Assets, to Amazon Web Services for $650 million.

Amazon will develop a data centre in Salem Township, Luzerne County, Pennsylvania, with up to 960 megawatts (MW) of power. See also: Amazon pays $650 million for a nuclear-powered data centre.

The 1,075-acre Susquehanna Steam Electric Station is the sixth-largest nuclear power station in the U.S. It has been operational since 1983, generating 63 million kilowatt-hours of electricity daily. Inside its Mark II containment buildings, there are two boiling water reactors from General Electric, with licenses valid until 2042 and 2044, respectively. See also: Carla Sanderson.

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Talen Energy will supply nuclear power at a fixed price

According to Talen Energy’s investor presentation, the company will supply nuclear power to Amazon’s new data centre at a fixed price once it is operational. Amazon’s minimum power purchase commitment will increase in increments of 120 megawatts over several years. Under the agreement, the cloud giant has a one-time option to set the commitment cap at 480 megawatts, and two additional 10-year extension options related to nuclear licensing renewals. See also: Kaleem Ahmed Usmani.

Massive power requirements of AWS services

While nuclear power may not be everyone’s preferred source of zero-net electricity, for Amazon Web Services, the deal makes a lot of sense given the massive power requirements of AWS services. See also: ArdaDaglioglu AS210880 routing identity.

The Susquehanna station is already operational, and the data centre campus is completed. With Amazon moving in, it will utilise 100% clean energy. See also: Arda Daglioglu.