In a landmark investment deal announced today, Amazon Web Services (AWS) has unveiled plans to invest $20 billion in Pennsylvania for the construction of two new data center campuses, marking the largest private sector investment in the state’s history. The ambitious expansion, set to unfold over the next decade, includes a strategic facility adjacent to a major nuclear power installation.
The technology giant’s plans center on a significant development in Salem Township, where one campus will be situated near the Susquehanna Steam Electric Station, a 2.5 GW nuclear facility. This location builds upon an existing engineering framework designed for 960 MW capacity. The project involves a partnership with Talen Energy, which has evolved from a traditional power utility to become an innovative force in nuclear energy.
Through its subsidiary Cumulus Data, Talen is developing a 475 MW data center campus next to its nuclear power station in Luzerne County, which will be integrated into Amazon’s artificial intelligence infrastructure. While the Federal Energy Regulatory Commission has currently limited the power supply to 300 MW due to grid stability considerations, AWS remains committed to advancing the project.
The initiative represents one of the most substantial private-sector nuclear power agreements in American history, with AWS leveraging carbon-free nuclear energy to power its expanding cloud computing operations. This strategic move could catalyze a revival of nuclear power as a crucial energy source for the United States’ growing data economy.
Pennsylvania Governor Josh Shapiro highlighted the economic impact of the investment, noting that the construction phase alone will create more than 1,250 union jobs. “Pennsylvania is competing again,” Shapiro stated, emphasizing the historic nature of Amazon’s
multi-billion-dollar commitment to developing cutting-edge data center facilities across the state.
The development aligns with an emerging trend in private sector clean energy procurement, particularly in the context of artificial intelligence operations. AWS’s approach demonstrates how major tech companies can address the energy-intensive nature of AI infrastructure while maintaining environmental sustainability commitments.
This strategic investment represents a significant shift in data center energy sourcing, with AWS opting for nuclear power’s
reliability over traditional grid systems. The partnership with Talen Energy, through its nuclear operations, provides AWS with consistent power delivery while avoiding typical grid-related constraints.
The project has attracted attention from energy market analysts, who view it as a potential model for future data center developments. By directly coupling data center operations with nuclear power
generation, AWS is establishing a new paradigm for sustainable digital infrastructure deployment.
The Salem Township facility’s proximity to the Susquehanna nuclear plant optimizes power transmission efficiency while ensuring a stable, carbon-free energy supply for AWS’s expanding cloud computing and AI operations. This arrangement demonstrates how tech companies can leverage existing nuclear infrastructure to support their growing energy needs while maintaining environmental commitments.
The investment is expected to significantly boost Pennsylvania’s economy while positioning the state as a major hub for digital infrastructure. The project’s scale and scope underscore the growing importance of reliable, clean energy sources in supporting the expansion of cloud computing and artificial intelligence technologies.
This development comes at a time when the technology sector is facing increasing scrutiny over its energy consumption, particularly in AI operations. AWS’s approach to partnering with nuclear power providers offers a potential blueprint for addressing these concerns while maintaining the robust infrastructure needed for advanced computing services.