Amazon Web Services (AWS) has significantly increased its footprint in Pennsylvania by acquiring a nuclear-powered data center campus for $650 million. This acquisition from Talen Energy encompasses the 1,200-acre Cumulus data center campus adjacent to the Susquehanna Steam Electric Station in Berwick, Pennsylvania. AWS has ambitious plans to boost the campus's capacity to 960 megawatts, powered by electricity from Talen under a decade-long Power Purchase Agreement (PPA). The transaction includes the land, power setups, the initial powered shell, and other assets, with Talen receiving $350 million upfront and an additional $300 million held in escrow pending future development milestones.
Talen intends to allocate a portion of the proceeds to acquire the remaining 5% equity in Cumulus Digital, the subsidiary responsible for the data center's development, thereby gaining full ownership.
The Cumulus campus presently features a 48-megawatt, 300,000-square-foot facility, finished last year, that benefits directly from the adjacent nuclear power station's carbon-free energy output — one of the largest in the U.S., producing 2.5 gigawatts. AWS’s future expansions will adhere to their contractual agreement, with phased deployments of 120 megawatts and an optional cap of 480 megawatts. Additionally, AWS will contribute to Talen's revenues through the sale of carbon-free energy.
The push towards sustainable, clean energy is further complicated by the data center industry's demand for power, driven by the growth in high-performance computing and AI. Despite more efficient power usage over the past decade, the surge in workload demands stresses the need for more renewable energy sources. The environmental impact of a data center hinges on the energy mix prevalent in its operational region. While certain centers harness power from on-site renewable sources or gas, the majority depend on the energy supplied by local grids. The data center sector plays a pivotal role in shaping the energy landscape through strategic PPAs for renewable sources.
Amazon has recently invested $7.4 billion in Ohio, primarily focusing on the establishment of a semiconductor manufacturing hub in Licking County. The initiative stems from Intel's groundbreaking $20 billion semiconductor manufacturing site, marking the largest single private-sector investment in Ohio's history. This project is anticipated to generate 7,000 construction jobs during the initial phase, with the long-term employment projection reaching tens of thousands across supplier and partner companies. Ultimately, the facility is expected to employ 3,000 Intel workers, contributing to the onshoring trend and reinforcing the importance of a resilient and geographically balanced semiconductor supply chain.
The investment aligns with the CHIPS Act, a legislative driver that played a pivotal role in facilitating such massive endeavors. In response to global demand for advanced semiconductors, the investment aims to strengthen domestic manufacturing capabilities, reducing dependence on global supply chains.
