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Talen Energy (NASDAQ:TLN) +9.7% pre-market Wednesday after saying it has expanded its nuclear energy relationship with Amazon (NASDAQ:AMZN) to provide carbon-free energy from Talen’s Susquehanna nuclear power plant in Pennsylvania to Amazon Web Services data centers in the region.
Under the terms of a new power purchase agreement, Talen (NASDAQ:TLN) will supply electricity to Amazon (NASDAQ:AMZN) for operations that support AI and other cloud technologies at the AWS data center campus adjacent to Susquehanna, with the ability to deliver to other sites in Pennsylvania.
The two companies also will explore building new small modular reactors within Talen’s (NASDAQ:TLN) Pennsylvania footprint and pursue expanding the nuclear plant’s energy output through uprates.
Under the expanded PPA, Talen (TLN) will provide Amazon (AMZN) with as much as 1,920 MW of nuclear power through 2042, with options to further extend its duration; the power delivery schedule will ramp over time, expecting to achieve full volume no later than 2032, with the potential to accelerate.
The companies said the existing Susquehanna co-located load arrangement will transition to a “front of the meter” arrangement after the completion of transmission reconfigurations expected in spring 2026, concurrent with Susquehanna’s refueling outage.
Under the new deal terms, Susquehanna will provide its carbon-free power to the PJM grid, Talen (TLN) will act as the retail electric generation supplier to Amazon (AMZN), and PPL (PPL) will be responsible for transmission and delivery.