Amazon announces $20B nuclear-powered data center expansion in US

Amazon has announced a historic $20 billion investment to build two large data center complexes in Pennsylvania, marking the largest private sector investment in the state’s history. One complex is under construction near Philadelphia, while the other is planned adjacent to the Susquehanna nuclear power plant in northeastern Pennsylvania. Amazon intends to power the latter data center directly from the nuclear plant, a move that has drawn federal scrutiny and is currently under review by the Federal Energy Regulatory Commission (FERC). This direct power connection could provide Amazon with up to 960 megawatts—about 40% of the plant’s output—enough electricity to power over half a million homes, potentially at a premium price. The Pennsylvania governor, Josh Shapiro, emphasized that this investment aims to revitalize local communities and reverse the trend of young workers leaving the state for better opportunities. Amazon’s acquisition of the nearby data center and land from Talen Energy for $650 million last year enables the company to expand significantly on that site. This expansion is part of Amazon’s broader strategy, which has seen about $10 billion pledged in 2024 alone for data centers across several states, driven by the growing energy demands of AI technologies. However, the direct power deal raises concerns about grid fairness and energy access, as it may limit availability for others and bypass grid improvement fees, prompting ongoing regulatory review.