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AWS signs nuclear datacentre deal

All part of the plan to feed AI's power demands

Amazon Web Services (AWS) has bolstered its datacentre infrastructure by acquiring a nuclear-powered datacentre campus in Pennsylvania.

Talen Energy Corporation confirmed the sale of the Cumulus datacentre campus to a major cloud service provider, identified as Amazon in Talen's investor presentation.

The deal, structured with $350 million at the time of closing and an additional $300 million escrowed, is tied to development milestones expected in 2024.

The sale includes all assets of the Cumulus datacentre, including land, power infrastructure and intangibles.

Talen president and CEO Mac McFarland said the deal delivers "an attractive return" on Talen's investment and vision in constructing Cumulus, while also generating value through the sale of carbon-free power from the nearby Susquehanna nuclear plant.

Set for massive growth

The Cumulus campus spans 1,200 acres and draws power from Talen Energy's adjacent 2.5GW Susquehanna Steam Electric Station (SSES), one of the largest nuclear power plants in the US.

Initially boasting 48 megawatts of capacity, the Cumulus facility was slated for expansion to 475 megawatts under Talen's ownership. Now, AWS plans to expand the campus to a total capacity of 960MW, with contractual power commitments increasing incrementally over several years.

As part of the agreement, Talen will provide AWS with energy through a 10-year Power Purchase Agreement (PPA) from the Susquehanna site.

Notably, AWS retains the flexibility to cap its commitments at 480 megawatts.

The announcement aligns with Amazon's recent efforts to invest in renewable energy sources.

Just last month, the company inked a deal with Oregon-based wind farm provider Avangrid, tapping into renewable energy from a site boasting 40 wind turbines capable of delivering up to 90 megawatts of power.

In 2023 Amazon ramped up its investments in renewable energy, emerging as the largest corporate buyer of clean energy sources worldwide, with investments in over 100 solar and wind energy projects.

A nuclear future

The trend towards nuclear-powered datacentres is not unique to AWS.

In 2022, Microsoft revealed a power purchase agreement with US-based Helion Energy to bolster its nuclear fusion plant project. Reports surfaced last year indicating that Microsoft was actively recruiting for positions related to its nuclear energy strategy.

The company's recent hire of Archana Manoharan as director of nuclear technologies emphasises its commitment to exploring small-scale atomic reactors for datacentre operations.

The surge in demand for clean energy in the datacentre industry comes at a critical time, with generative AI and high-performance computing workloads driving electricity consumption to unprecedented levels.

The European Commission estimates a 60% increase in power demands by 2030, primarily fuelled by the rise of generative AI.

Datacentre operators are grappling with power requirements ranging from 300MW to 500MW, prompting a fundamental shift in site selection criteria and design strategies - and accompanying pushback from local authorities.

In a separate announcement on Monday, AWS revealed plans to invest $5.3 billion in Saudi Arabia over the next few years, aiming to create an AWS infrastructure Region in the country by 2026.

The initiative will feature three Availability Zones initially, expanding AWS's global footprint to support organisations in unlocking the full potential of cloud technology.

AWS signs nuclear datacentre deal

All part of the plan to feed AI's power demands

Amazon Web Services (AWS) has bolstered its datacentre infrastructure by acquiring a nuclear-powered datacentre campus in Pennsylvania.

Set for massive growth

A nuclear future

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