Amazon Web Services’ large data center is located next to the Susquehanna nuclear power plant in Pennsylvania.
The company had secured a direct supply of nuclear power from Talen Energy, featuring a 960 MW interconnection.
In March, Amazon purchased a large data center in a remote town in Pennsylvania, primarily because it was located next to a nuclear power plant. However, the company didn’t expect that regulators would reject its plans to connect its servers to the reactor.
Context. The energy consumption of major tech companies has surged with the rise of generative artificial intelligence. As a result, tech giants like Amazon are increasingly turning to nuclear power to secure a reliable power supply for their data centers while adhering to their carbon neutrality commitments.
However, local regulations and environmental challenges are complicating their plans.
Amazon’s new data center. In March, Amazon acquired a 485-acre data center from Talen Energy, the Susquehanna nuclear power plant operator in Pennsylvania. The $650 million investment included a unique detail: a direct connection to the 2.5 GW plant.
As part of the agreement, Amazon committed to securing 960 MW of capacity for new Amazon Web Services servers. The nuclear power plant would supply power increments of 120 MW at a predetermined price for the first ten years.
The “no” from regulators. On Nov. 1, the Federal Energy Regulatory Commission (FERC) voted against an interconnection pact that would have allowed Amazon to connect its new data center directly to the Susquehanna nuclear plant. With one vote in favor and two against, the proposal was rejected because the data center would have consumed a substantial portion of the power generated by the plant.
FERC expressed concerns that other grid customers could experience blackouts, fluctuations in supply, and increased power bills if Amazon’s data center diverted too much power from the plant’s two reactors.
The only vote in favor. FERC chairman Willie Phillips voted in favor of the interconnection agreement. He said that denying the pact was “a step backward for both electric reliability and national security.” He also pointed out that data centers powering AI require a “reliable electricity” supply, which nuclear power can provide.
Unlike renewable sources such as wind and solar energies, nuclear power offers a stable energy supply. Additionally, like green energy, it’s carbon neutral, although it comes with significant environmental and safety challenges related to managing radioactive waste.
Full commitment to SMRs. Traditional fission power remains somewhat relevant. Microsoft has recently reached an agreement to reopen the Three Mile Island nuclear power plant, which was closed in 2019. However, major technology companies are increasingly investing in developing small modular reactors (SMRs).
Thanks to their passive cooling systems, SMRs are designed to be safer and more efficient. Additionally, they can be manufactured in modules that are transported to different sites for assembly. Amazon has already signed three separate agreements to develop and build SMRs. Meanwhile, other tech giants, such as Microsoft, Google, and Meta, are also pursuing similar initiatives because they require substantial power to train their AI models.
Image | Talen Energy | Christian Wiediger
See all comments on https://www.xatakaon.com
SEE 0 Comment