Nuclear energy’s AI boom blew a fuse—here’s what could happen next

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Subscribe to enjoy similar stories. Owners of nuclear power plants had been riding high on hopes that they could sign lucrative contracts with tech companies to sell always-available power. A ruling from the Federal Energy Regulatory Commission won’t extinguish those prospects, but does throw a bit of cold water on them.

Late on Friday, the Federal Energy Regulatory Commission rejectedTalen Energy’s request to increase the amount of power that it could provide directly from its existing Susquehanna nuclear power plant to Amazon’s data center from 300 megawatts to 480 MW. That hamstrings Talen’s ability to step up the amount of power it sells directly to Amazon, whose co-located data center has a potential capacity of up to 960 MW. By denying Talen’s revised agreement, FERC is emphasizing that it would “continue to prioritize grid reliability and existing stakeholders over rapid load growth and new power market entrants," renewable energy-focused financial service firm Karbone wrote in a note to clients.

The ruling follows objections from utilities including Exelon and American Electric Power, who argued that the nuclear power plant would benefit from the grid’s transmission system without paying for it. FERC didn’t address the transmission cost aspect in its rejection, but simply said the parties didn’t meet the “high burden" to justify the change. Talen Energy’s shares, after plunging as much as 8% Monday morning, recovered somewhat and were down about 2% by market close.