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Stocktwits - Shares of Talen Energy Corp. (TLN) surged 7.73% to $274.82 on Wednesday after the company entered into a power purchase agreement with Amazon (NASDAQ:AMZN).
Under the new power purchase agreement, Talen will supply power from its Susquehanna nuclear plant to Amazon Web Services (AWS) data centers in the region and can deliver it to other sites throughout Pennsylvania.
Talen will deliver 1,920 megawatts of carbon-free nuclear energy to Amazon through 2042, with an option to extend the agreement. Deliveries will scale up over time, with full volume expected no later than 2032.
The two companies will also look to develop small modular reactors (SMRs) in Pennsylvania and expand their power output to add net-new energy to the PJM grid.
The rapid expansion of data centers and artificial intelligence is driving large tech companies like Amazon and Meta Platform (NASDAQ:META) to seek reliable energy sources urgently.
Last week, Meta signed a 20-year deal with Constellation Energy (NASDAQ:CEG) to buy 1.1 gigawatts of nuclear power from Constellation Energy’s Clinton Clean Energy Center in Illinois.
In March, Meta, Amazon, and Google (NASDAQ:GOOGL) jointly pledged to help triple global nuclear energy capacity by 2050.
Following the deal announcement, retail sentiment on Stocktwits turned ‘extremely bullish’ amid ‘extremely high’ message volumes.
TLN sentiment and message volume as of 01:22 am on June 12 | Source: StocktwitsOne user believes that the stock could get a decent re-rating due to the Amazon deal and potentially double in value this year.
Another user said that the stock is showing high relative strength.
Year-to-date, Talen Energy stock has gained around 35%.
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