After the highest energy regulatory institution in usa rejected a special power supply agreement for the facility, Amazon (AMZN.US) stated that it is committed to building a data center campus near a nuclear power station in Pennsylvania.
After the highest energy regulatory institution in usa rejected a special power supply agreement for the facility, Amazon (AMZN.US) stated that it is committed to building a data center campus near a nuclear power station in Pennsylvania.
The Federal Energy Regulatory Commission in the usa rejected Talen Energy's request last Friday to increase the amount of electricity supplied from its nuclear power station to Amazon Web Services data centers. The stock price of the american electric power producer fell as investors believed the FERC's ruling would hinder the efforts of large technology companies to quickly obtain nuclear energy for their growing data centers.
Amazon spokesperson Duncan Neasham stated on Monday: "We remain committed to working with companies like Talen Energy to continue innovating and advancing zero-carbon energy solutions, providing power for usa datacenter operations, and supporting the many technologies that serve our customers and daily life." Neasham confirmed the company's intention to continue advancing the Talen project.
In March this year, Talen announced that Amazon's cloud computing division will invest $0.65 billion to build a data center campus with a generating capacity of 960 megawatts near Talen's Susquehanna nuclear power station.
According to the agreement, the data center campus will be directly powered by the factory, meaning Amazon does not have to connect to a broader grid or fund related transmission upgrades. Some utilities have questioned this move, stating it could threaten grid reliability and increase electricity costs. Talen Energy has previously been granted rights to supply up to 300 megawatts of power to the facility in this way, a concession unaffected by the FERC ruling.
Amazon and other major cloud computing companies urgently need electricity to support their growing businesses while pursuing public goals of reducing dependence on fossil fuels, hence they have sought agreements with nuclear power plant operators.