Amazon Nuclear Deal Helps Fuel 8% Leap in Talen Energy Stock (TLN)

Shares in U.S. utility group Talen Energy (TLN) powered higher today as it went nuclear with tech giant Amazon (AMZN).

Energy Boost

Talen, whose stock zoomed up 8%, said it had expanded its nuclear energy partnership with Amazon to supply up to 1,920 megawatts of electricity from its Susquehanna plant in Pennsylvania to Amazon Web Services (AWS) data centers.

The deal, which will last until 2042, is a huge boost to Talen as it means steady, long-term revenue, and for Amazon, which is looking to meet growing demand for fossil fuel-free energy to keep its AI and cloud operations on track.

As part of the partnership, both companies will also look at building new Small Modular Reactors and expanding the nuclear plant’s energy output.

Amazon’s share price was flat in early trading, though the partnership extension seems to allay some fears over the availability of clean electricity.

Supply Squeeze

Demand for electricity is growing in the U.S., driven by the growth in data centers and artificial intelligence, with supply potentially being squeezed by the crackdown in subsidies for renewable energy development under President Trump.

As such, U.S. tech firms are scrambling around to find new or larger sources of energy to keep the AI fires burning.

Nuclear power group Constellation Energy (CEG) recently signed a 20-year power purchase agreement with Meta Platforms (META) to deliver 1.1 gigawatts from its Clinton Clean Energy Center in Illinois, starting in 2027.

Back in May, Element Power announced a partnership with tech giant Google (GOOGL) to develop three advanced nuclear reactor sites. Last October, it agreed to buy energy from Kairos Power’s small modular reactors, with the first expected to be running by 2030.

Anthropic’s co-founder, Jack Clark, recently estimated that 50 gigawatts of new power (about the size of 50 nuclear plants) will be needed by 2027 to support AI development.

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