FERC Rejects Amazon-Talen Nuclear Power Deal, Causing Stock Slump

The decision raises concerns about grid reliability and consumer costs amid growing energy demand from AI-driven data centers.

The Federal Energy Regulatory Commission (FERC) rejected a plan to increase power supply to Amazon's data center near Talen Energy's Susquehanna nuclear plant.
The rejection led to significant stock declines for Constellation Energy, Talen Energy, and Vistra Corp., highlighting market sensitivity to regulatory decisions.
FERC's decision was based on potential grid reliability issues and increased consumer costs, setting a precedent for future co-location power deals.
Despite strong third-quarter earnings, Constellation Energy shares fell as the nuclear sector faces regulatory hurdles amid rising AI-related energy demand.
Amazon's ambitions for nuclear-powered data centers face challenges, as the tech giant seeks alternative energy solutions like small modular reactors.