Talen, Constellation and Vistra tumble after government rejects Amazon nuclear-data center agreement

Technology companies' propulsion to straight powerfulness artificial quality with atomic plants deed a large roadblock, aft a national regulator rejected a petition to summation powerfulness for an Amazon information center.

The Federal Energy Regulatory Commission connected Friday rejected a petition to summation the magnitude of powerfulness the Susquehanna atomic works successful Pennsylvania tin dispatch to an Amazon information halfway campus.

Independent powerfulness shaper Talen Energy successful March sold the information halfway field to Amazon for $650 million, which would beryllium powered by the atomic works successful a first-of-its-kind deal.

Talen's banal fell much than 5% successful premarket trading connected FERC's denial order. Constellation Energy and Vistra Corp. tumbled much than 11% and astir 3%, respectively, successful sympathy. Investors were expecting Constellation and Vistra to denote akin deals astatine immoderate point.

The grid relation PJM Interconnection and the Susquehanna plant, which Talen owns, had filed a petition to summation the magnitude of powerfulness dispatched to the Amazon information halfway from 300 megawatts presently to 480 megawatts.

The arrangement, called co-location by the powerfulness industry, "could person immense ramifications for some grid reliability and user costs," said FERC Commissioner Mark Christie successful his sentiment backing the order.

Talen said FERC's determination volition person a "chilling effect connected economical improvement successful states specified arsenic Pennsylvania, Ohio, and New Jersey" successful a connection Monday. The powerfulness institution said it is evaluating its options with a "focus connected commercialized solutions."

The Amazon information halfway field tin inactive usage 300 megawatts of powerfulness from the Susquehanna atomic plant, according to Talen. The institution said the woody is "is conscionable and tenable and successful the champion involvement of consumers."

The FERC determination does not straight interaction Constellation's plans to restart the Three Mile Island atomic works successful 2028 done a powerfulness acquisition statement with Microsoft. Three Mile Island volition dispatch powerfulness to the electrical grid, alternatively than straight powerfulness Microsoft's information centers.

But Constellation and Vistra person expressed involvement successful striking deals with tech companies that are akin to the statement betwixt Talen and Amazon.

Data centers that powerfulness AI and unreality computing are consuming increasing amounts of electricity. Utilities are scrambling to find ways to powerfulness the increasing electrical load. Tech companies are progressively turning to atomic powerfulness due to the fact that it is reliable, fossil escaped and doesn't emit c dioxide.

Vistra and Constellation are 2 of the champion performing stocks successful the S&P 500 this year, arsenic investors stake connected a imaginable windfall from the tech sector's increasing vigor needs.

Vistra's banal has much than tripled this year, outpacing adjacent Nvidia to go the champion performing banal successful the market. Constellation has much than doubled and is the 4th champion banal successful the S&P 500 this year.