nuclear power plant

FERC Rejects Amazon Data Center’s Amended Plan at Pennsylvania Nuclear Site


U.S. energy regulators reject Amazon’s revised plan for a data center at a Pennsylvania nuclear site, citing concerns over electricity costs and grid reliability.


U.S. energy regulators have turned down a revised interconnection agreement for an Amazon data center connected to a nuclear power plant in Pennsylvania. According to documents filed Friday, members of the Federal Energy Regulatory Commission (FERC) raised concerns about the plan’s potential impact on public electricity costs and grid reliability.
The data center, situated at Talen Energy’s Susquehanna nuclear power facility, sought an increased capacity to support its operations. While tech giants increasingly co-locate data centers with power plants to meet surging energy demands driven by AI advancements, FERC officials highlighted potential risks in this approach.
“Co-location arrangements like this introduce complex and multifaceted challenges that could have significant consequences for grid stability and consumer energy costs,” FERC Commissioner Mark Christie stated in the ruling.
One primary issue with the proposed Talen agreement was the significant diversion of power from the regional grid. FERC emphasized that this shift could lead to higher electricity rates and raise questions about who would shoulder the costs of necessary transmission and distribution upgrades.
FERC Chairman Willie Phillips expressed opposition to the decision, warning it could hinder the U.S. in the global race for technological leadership. “This is a setback for both energy reliability and national security,” Phillips remarked.

Source: Reuters

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