Big Tech Seeks Direct Power Plant Connections For Data Centers

Tech giants are increasingly negotiating direct power deals with plant owners to meet their growing energy demands, bypassing the costly process of connecting to the public electric grid, Marc Levy reported for the Associated Press (AP).

A notable case involves Amazon Web Services (AWS) and its plans to connect a data center directly to the Susquehanna nuclear plant in Pennsylvania. I Photo: Amazon

This trend has sparked debates over whether prioritizing high-paying corporate customers will reduce available power for others and whether exempting these companies from grid-related costs is equitable.

Federal regulators are now grappling with how to address these issues. A notable case involves Amazon Web Services (AWS) and its plans to connect a data center directly to the Susquehanna nuclear plant in Pennsylvania.

This arrangement, known as a "behind the meter" connection, would allocate up to 960 megawatts — about 40% of the plant's capacity — to AWS, enough to power over half a million homes.

The Federal Energy Regulatory Commission (FERC) has rejected the deal on procedural grounds, leaving it in limbo. It's unclear when FERC will revisit the matter or how an upcoming change in presidential administration might influence the decision.

"The companies are frustrated because they have a significant business opportunity now," said Bill Green, director of the MIT Energy Initiative. "If delayed for years, they might completely miss it."