Under the terms of the agreement, Talen will provide directly connected carbon-free electricity to the AWS data center campus from Susquehanna, a nuclear power plant it owns next to the facility.
AWS plans to develop a data center campus of up to 960 MW, with minimal contractual power commitments to Talen, increasing by 120 MW over several years.
There is a one-time option to cap your commitment at 480 MW.
Each step-up in capacity commitment has a fixed price for the first 10 years, after which it is repriced based on a fixed margin above PJM's energy price and capacity price.
PJM is a regional transmission organization that coordinates the movement of wholesale electricity in Pennsylvania and surrounding states.
Talen began construction on the site in 2021 and completed the 48MW hyperscale facility in January 2023.
Alongside the data center campus, Talen also built a cryptocurrency mining facility that was not included in the deal with Amazon.
This nuclear power plant is the third largest in the United States and can provide 2.5GW of electricity. It was built in the 1980s by energy company PPL.
It passed into Talen's hands in 2015 after PPL's ​​competitive power generation business was combined with a competitive power generation business owned by private equity firm Riverstone Holdings.
Amazon plans to spend $650 million on data centers, which equates to Talen's invested capital multiple of 2.5x.
This includes $350 million upon closing and $300 million in escrow to be released in conjunction with development milestones expected in 2024, according to an investor presentation from Talen.