Rejection of Amazon Project: Nuclear Energy Companies Plunge on Wall Street

The refusal by the U.S. energy regulator for an Amazon data center project powered by nuclear energy has led to a stock drop for several energy companies on the New York Stock Exchange.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

The nuclear energy sector in the United States was shaken by the rejection of a data center project proposal by the Federal Energy Regulatory Commission (FERC). This project, led by Amazon in partnership with Talen Energy, aimed to power a data processing center located in Pennsylvania through a nuclear power plant.

Amazon had reached an agreement with Talen Energy to purchase a data center powered by the Susquehanna nuclear power plant in Pennsylvania. Last June, PJM Interconnection, a member of the electric grid covering the northeastern United States, requested that FERC authorize an increase in the data center’s power capacity from 300 to 480 megawatts.

The FERC Rejection and Its Rationale

On Friday, FERC officially rejected PJM Interconnection’s request. Commissioner Mark Christie, an influential member of FERC, justified this decision by citing potential risks to the reliability of the electric grid and possible impacts on consumer costs. According to Christie, expanding capacity could place additional pressure on the existing energy infrastructure, leading to significant financial and operational consequences.

Talen Energy disputed this decision in a press release, calling the project “fair, reasonable, and in the interest of consumers.” The group emphasized that this decision could hinder economic development in several northeastern states, including Pennsylvania, Ohio, and New Jersey. Talen Energy stated it intends to continue discussions with FERC to seek a more favorable resolution for this proposal.

Market Impact on Energy Companies

Following this decision, several nuclear energy companies saw a notable drop in their stock prices. Talen Energy, directly involved in the project, experienced a 2.42% decline in its share price. Constellation Energy, a major nuclear power plant operator, fell by 9.75%, while Vistra Corp, another sector player, dropped by 3.05%.

Start-ups in Modular Reactor Technology Also Affected

Investor concerns also impacted start-ups in the small modular reactor (SMR) sector. Oklo, backed by Sam Altman, the CEO of OpenAI, and NuScale experienced declines of 3.37% and 4.23%, respectively. Investors appear wary of the future of innovative nuclear technology, given increasingly stringent energy regulations.

Tech Giants Seek Nuclear Energy

Amazon, along with other technology giants such as Microsoft and Google, recently signed multiple agreements with nuclear energy providers to meet their massive energy needs, which are further exacerbated by the rise of generative artificial intelligence (AI). AI generates a significant energy demand in the data centers required for its development and processing.

As tech companies pursue initiatives to ensure a stable and sustainable energy supply, FERC’s recent decision raises questions about the viability of nuclear energy-focused projects. The future of these partnerships now appears uncertain, prompting concerns over regulatory obstacles that could hamper innovation within the sector.

NANO Nuclear strengthens its North American strategy by acquiring Global First Power in Canada, securing regulatory rights for its KRONOS MMR™ project at Chalk River.
South Korea becomes the first country to submit a safeguards technical report to the IAEA for a small modular reactor, setting a precedent for early integration of non-proliferation requirements in nuclear design.
The Environmental Authority criticises the lack of key data on health risks, chemical discharges and construction safety for EDF's two upcoming EPR2 reactors in Seine-Maritime.
Brazil and China have concluded a three-year agreement to secure access to essential radioisotopes for the medical, industrial and scientific sectors, with no financial exchange between the parties.
US-based developer Last Energy will deploy its first domestic microreactor at Texas A&M-RELLIS, marking a strategic step in the advanced modular reactor race.
PGE acquires ZE PAK's stake in the joint venture responsible for developing Poland’s second nuclear site, consolidating a strategic asset within its energy portfolio.
Amazon unveils new visuals of its upcoming nuclear site, marking a key step in its partnership with X-energy to deploy up to 960 MW of modular nuclear capacity in Washington state.
Canadian uranium producer NexGen Energy has completed a A$1bn ($639mn) equity raise split between North American and Australian markets to support the development of its Rook I project.
Tokyo Electric Power Company Holdings is examining the permanent closure of units 1 and 2 at the Kashiwazaki-Kariwa nuclear power plant, the oldest at the site, while continuing efforts to restart unit 6.
The formal expiration of the 2015 nuclear deal with Iran comes as international sanctions have already been reinstated and diplomatic negotiations remain stalled.
Oklo, newcleo and Blykalla partner to develop advanced nuclear fuel infrastructure in the United States, backed by a planned $2bn investment.
enCore Energy has identified three new uranium roll fronts at its Alta Mesa project, with ongoing drilling aimed at defining their extent and accelerating development work.
California-based Radiant will build its first microreactor production facility in Oak Ridge, on a former Manhattan Project site, with production targeted at 50 units per year by 2028.
EDF restarted the Flamanville EPR reactor after repairing non-compliant valves, delaying the target of reaching full power output of 1,620 MW until the end of autumn.
Nano Nuclear and the University of Illinois will begin drilling operations for the KRONOS MMR™ reactor on October 24, marking a key step toward commercialisation of the nuclear project on the Urbana-Champaign campus.
Natura Resources is finalising construction of the MSR-1, an advanced liquid-fuel nuclear reactor, with a planned launch in 2026 on the Abilene Christian University campus.
JPMorganChase commits $10bn in direct investments as part of a $1.5tn plan to boost energy independence and strategic technologies, including next-generation nuclear power.
A roadmap under development aims to establish regulatory and technical foundations for the deployment of small modular reactors, with the goal of strengthening national energy security and attracting private capital.
EDF adjusts its 2025 nuclear production forecast to between 365 and 375 TWh, supported by the performance of its industrial programme START 2025 focused on maintenance efficiency.
The United Nations nuclear agency is urging Ukraine and Russia to establish a local ceasefire to repair damaged power lines at the Zaporizhzhia plant, which remains on alert after losing all external power supply.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.