Flash Note: Talen/Amazon PPA Expansion + Market Update

Just eight days ago, the world learned that META Signs 20-Year Agreement with CEG in its first foray into purchasing output from a nuclear power plant. Since that announcement, we learned yesterday that META is finalizing a deal to invest nearly $15B in ‘Scale AI’ and wants to hire its CEO Alexandr Wang.

This morning, on June 11st, Talen Energy ($TLN) announced that they are expanding their relationship with Amazon ($AMZN), who entered into a power purchase agreement (PPA) for 1,920-MWs to support Amazon operations and explore SMR technology through 2042, with options to extend its duration.

Under the terms of the new deal, Talen will supply electricity to Amazon operations that support AI and cloud technologies at their data center campus adjacent to Susquehanna and both companies will explore building SMRs within Talen’s Pennsylvania footprint. Additionally, Talen is looking to add energy output at Susquehanna through energy output uprates. To learn more about power uprates, we recommend the resources on the NRC website which can be found here.

The existing Susquehanna co-located load arrangement between the two will transition to a “front-of-the-meter” arrangement in spring 2026. Susquehanna will provide its carbon-free power to the PJM grid, Talen will act as the retail electric generation supplier to Amazon, and PPL Electric Utilities will be responsible for transmission and delivery. Source: Talen Energy

You can read the full statement from Talen Energy here.

Last week, we felt the META announcement was a turning point for the hyperscalers as we moved from idea to execution. Today’s news reinforces our belief that the shift is real and will accelerate from here.