Amazon Web Services (AWS) has announced a $20 billion investment in Pennsylvania to build two major data center complexes. One of the sites will directly source energy from a nuclear power plant in a deal now under federal scrutiny. The move underscores Big Tech’s aggressive expansion to meet rising demand for artificial intelligence and cloud computing infrastructure.
Amazon’s Major Infrastructure Expansion in Pennsylvania
Amazon Web Services, the cloud computing division of the tech giant, revealed plans to build two new data center complexes in Pennsylvania. One of these will be located just north of Philadelphia, while the other is adjacent to the Susquehanna nuclear power plant. Kevin Miller, AWS’s vice president of global data centers, confirmed the developments during an interview with The Associated Press.
Tapping into Nuclear Power: A Controversial Setup
The data center near the Susquehanna nuclear plant is the result of a $650 million deal between Amazon and Talen Energy, the plant’s majority owner. The deal includes a unique “behind the meter” power connection that would allow Amazon to draw up to 960 megawatts — equivalent to 40% of the plant’s output, enough to power over 500,000 homes.
However, this arrangement has prompted regulatory concerns. The Federal Energy Regulatory Commission (FERC) is now reviewing the deal, marking the first time such a direct-power agreement is being scrutinized at the federal level. Key concerns include the potential for unfair energy distribution and whether large-scale corporate customers like Amazon are being exempted from contributing to grid maintenance costs.
This investment is part of Amazon’s broader strategy to rapidly scale up its cloud and AI infrastructure. Since the beginning of 2024, the company has pledged approximately $10 billion each for similar data center projects in Mississippi, Indiana, Ohio, and North Carolina. The AI boom and surging cloud service usage have drastically increased demand for high-powered, energy-intensive data centers.
