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Talen Energy and Amazon Partner on Nuclear Power Deal to Fuel AWS Data Centers

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U.S. utility Talen Energy announced an expanded partnership with Amazon to supply up to 1,920 megawatts of carbon-free electricity from its Susquehanna nuclear plant in Pennsylvania to Amazon Web Services (AWS) data centers. The long-term agreement, lasting until 2042, provides Talen with a stable revenue stream while supporting Amazon’s growing energy needs for AI and cloud operations.

Both companies are also exploring the construction of new Small Modular Reactors within Talen’s Pennsylvania footprint and considering expanding the existing nuclear plant’s capacity. This deal comes amid rising U.S. electricity demand for data centers and AI workloads—the first increase in two decades—pushing Big Tech firms to secure reliable and sustainable power sources.

Earlier this month, Constellation Energy reached a similar deal with Meta Platforms to keep an Illinois nuclear reactor operational for 20 more years.

Following the announcement, Talen Energy shares rose nearly 8% in premarket trading.

Kevin Miller, AWS vice president of global data centers, highlighted the investment’s local economic impact, calling it the largest private sector investment in Pennsylvania’s history with $20 billion committed and 1,250 high-skilled jobs created. Miller also emphasized AWS’s commitment to powering its infrastructure with carbon-free energy through this collaboration.

Amazon Pledges $20 Billion Investment to Expand Cloud Infrastructure in Pennsylvania

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Amazon.com announced on Monday a plan to invest at least $20 billion in Pennsylvania to significantly expand its data center infrastructure. This move adds to Amazon’s multi-billion-dollar commitments supporting the rapid growth of artificial intelligence technologies.

The Pennsylvania investment follows closely after Amazon’s recent announcements to invest $10 billion in North Carolina and over $5 billion in new cloud infrastructure projects in Taiwan. These investments highlight the tech giant’s strategy to boost its cloud computing capacity amid intense competition in generative AI and cloud services.

Amazon expects the Pennsylvania project to create 1,250 high-skilled jobs directly, while also supporting thousands more jobs across the Amazon Web Services (AWS) data center supply chain. Salem Township and Falls Township have been identified as initial locations for new data center campuses.

The company reported capital expenditures of approximately $25 billion in the first quarter of 2025 and indicated plans to maintain this spending level throughout the year. It has not yet clarified whether the $20 billion in Pennsylvania is included in the current expenditure plans or provided a specific timeline for the investment.

Broadcom Shares Slip as Revenue Forecast Underwhelms AI-Driven Expectations

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Broadcom shares declined over 3% in early trading on Friday after its third-quarter revenue forecast failed to meet the high expectations of investors who have been heavily bullish on chip stocks amid the ongoing artificial intelligence surge.

The Palo Alto-based semiconductor giant projected third-quarter revenue of approximately $15.80 billion, slightly above the analysts’ consensus estimate of $15.71 billion, according to LSEG data. However, analysts noted that expectations for Broadcom had already been elevated due to its critical role in AI infrastructure.

“High expectations drove a bit of downside,” said Bernstein analyst Stacy Rasgon, reflecting the sentiment that even marginally positive forecasts may not be enough in the current AI-fueled market climate.

Broadcom provides semiconductors to major clients like Apple and Samsung and supplies advanced networking hardware essential for AI data centers, where massive data transfers are required to power generative AI models. In addition to its networking chips, Broadcom also designs custom AI processors for large cloud providers, offering an alternative to Nvidia’s expensive off-the-shelf chips.

Despite its position in the AI supply chain, Broadcom remains exposed to global trade uncertainties, particularly around U.S. export restrictions aimed at limiting China’s access to advanced technology. “AVGO is ramping two additional customers, but they are still small. So the processor business will grow this year, but at a measured rate,” Morgan Stanley commented.

Rival Marvell Technology, meanwhile, offered a more optimistic outlook last week, forecasting stronger-than-expected second-quarter revenue driven by growing demand for custom chips supporting AI workloads in data centers.

Broadcom briefly crossed the $1 trillion market cap threshold in December, reflecting investor optimism about AI-related chip demand. Its shares have climbed roughly 12% year-to-date. However, its current valuation — with a 12-month forward price-to-earnings ratio of 35.36 — remains significantly higher than Marvell’s 20.63, according to LSEG data.