Talen Energy, a US energy company, is facing opposition from several major utilities regarding its recent deal with AWS for a data center project. The opposing group, which includes companies like American Electric Power and Exelon, claims that the deal will lead to higher energy bills for consumers and potential issues with grid availability. However, Talen has defended the deal in a filing with the Federal Energy Regulatory Commission (FERC), accusing the utilities of trying to derail the process illegally. The $650 million deal involves AWS acquiring a data center campus from Talen adjacent to the Susquehanna Nuclear Power Plant in Pennsylvania. The project aims to meet the increasing energy demands driven by Generative AI technology and will leverage power from the nuclear plant. Talen is also set to supply power to AWS under a 10-year Power Purchase Agreement (PPA).
The utility group has requested FERC to reject the deal or hold a hearing to scrutinize it further, citing potential additional costs for consumers. In response, Talen has urged FERC to dismiss the opposition’s claims, stating that the deal has the support of all affected parties except for Exelon and AEP. The energy company argues that any delay or rejection of the agreement could hinder data center expansion and discourage future power plant construction, particularly at a time when the US is facing heightened electricity demand. FERC has yet to make a decision on whether to schedule a hearing or reject the deal altogether.
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https://www.itpro.com/infrastructure/data-centres/aws-nuclear-powered-data-center-deal-has-hit-a-roadblock-but-its-preparing-to-fight-its-case