The Federal Energy Regulatory Commission (FERC) blocked Amazon’s bid to access more power from the Susquehanna nuclear plant for its Pennsylvania data center, citing grid reliability and consumer cost concerns. The Hill reports: In a 2-1 decision, the FERC found the regional grid operator, PJM Interconnection, failed to prove that the changes to the transmission agreement with Susquehanna power plant were necessary. The regulator’s two Republican commissioners, Mark Christie and Lindsay See, outvoted Democratic chair Willie Phillips. The chair’s two fellow Democratic commissioners, David Rosner and Judy Chang, sat out the vote. “Co-location arrangements of the type presented here present an array of complicated, nuanced and multifaceted issues, which collectively could have huge ramifications for both grid reliability and consumer costs,” Christie wrote in a concurring statement.
In a dissenting statement, Phillips argued the deal with Amazon “represents a ‘first of its kind’ co-located load configuration” and that Friday’s decision is a “step backward for both electric reliability and national security.” “We are on the cusp of a new phase in the energy transition, one that is characterized as much by soaring energy demand, due in large part to AI, as it is by rapid changes in the resource mix,” Phillips wrote.
Amazon purchased a 960-megawatt data center next to the Susquehanna power plant for $650 million earlier this year. Following the announcement, PJM sought to increase the amount of power running directly to the co-located data center. However, the move faced pushback from regional utilities, including Exelon and American Electric Power (AEP).
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