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.

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.

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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.

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.

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

Chloe-Chen

Chloe Chen

Chloe Chen is a junior writer at BTW Media. She graduated from the London School of Economics and Political Science (LSE) and had various working experiences in the finance and fintech industry. Send tips to c.chen@btw.media.

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