Amazon Pays $650 Million For Nuclear-Powered Data Center
One of the US's largest nuclear power plants will directly power cloud service provider Amazon Web Services' new data center. Power provider Talen Energy sold its data center campus, Cumulus Data Assets, to Amazon Web Services for $650 million. Amazon will develop an up to 960-megawatt (MW) data center at the Salem Township site in Luzerne County, Pennsylvania. The 1,200-acre campus is directly powered by an adjacent 2.5 gigawatt (GW) nuclear power station also owned by Talen Energy.
The 1,075-acre Susquehanna Steam Electric Station is the sixth-largest nuclear power plant in the US. It's been online since 1983 and produces 63 million kilowatt hours per day. The plant has two General Electric boiling water reactors within a Mark II containment building that are licensed through 2042 and 2044. According to Talen Energy's investor presentation, it will supply fixed-price nuclear power to Amazon's new data center as it's built. Amazon has minimum contractual power commitments that ramp up in 120 MW increments over several years. The cloud service giant has a one-time option to cap commitments at 480 MW and two 10-year extension options tied to nuclear license renewals.