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Amazon is committing to nuclear power for the next two decades as part of a deal with Constellation Energy that will support more than $3 billion in infrastructure investments as demand for electricity continues to rise.
The 20-year agreement covers 690 megawatts of power from Constellation’s Calvert Cliffs Clean Energy Center in Maryland and will support an expansion of approximately 190 megawatts expected to come online between 2030 and 2032, the companies announced Wednesday.
Amazon and Constellation also entered into a retail electricity supply agreement covering Amazon’s operations in the 13-state PJM market. The companies said the deal would help Amazon manage energy costs at its locations throughout the region.
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Amazon signage at the CES 2024 event in Las Vegas, January 10, 2024. (Bridget Bennett/Bloomberg via Getty Images)
The long-term commitment will also provide Constellation with greater revenue certainty as it seeks to extend Calvert Cliffs’ operating licenses for an additional 20 years. The plant’s two reactors are authorized until 2034 and 2036.
The deal comes as Amazon and other technology companies seek large amounts of reliable electricity to support the expansion of data centers and artificial intelligence infrastructure, fueling a surge in corporate interest in nuclear power as a source of around-the-clock generation.
Amazon and Constellation also entered into a retail electricity supply agreement covering Amazon’s operations in the 13-state PJM market. (Scott Olson/Getty Images)
Amazon has already made several moves in the nuclear energy space, including a $500 million investment in advanced nuclear developer X-energy and a deal with Energy Northwest to support the development of small modular reactors in Washington state.
Unlike a direct connection between a power plant and a data center, electricity generated at Calvert Cliffs will continue to flow into PJM’s regional grid rather than being routed exclusively to Amazon facilities.
“This agreement demonstrates how private investment can strengthen critical energy infrastructure,” said Joe Dominguez, president and CEO of Constellation.
“Amazon’s commitment supports the long-term operation of Calvert Cliffs for generations to come and creates a strong foundation for future investments in both the facility and advanced nuclear technologies.”
A conveyor belt moves packages through an Amazon warehouse. (Justin Tallis/AFP via Getty Images)
Calvert Cliffs is Maryland’s only nuclear power plant and can produce up to 1,790 megawatts of electricity, enough to power the equivalent of more than 1.3 million homes. The factory employs more than 800 people.
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“Amazon is committed to investing in carbon-free energy to strengthen the grid and benefit the communities where we operate,” said Kerry Person, vice president of AWS Worldwide Operations and Data Center Delivery.
“This long-term agreement with Constellation supports the continued operation and expansion of Maryland’s largest carbon-free energy source, supports hundreds of jobs and brings significant new generation to the regional grid.
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