talen energy v. ferc -- nuclear data center colocation

case overview

Case	Talen Energy v. FERC
Court	5th U.S. Circuit Court of Appeals, New Orleans
Filed	January 16, 2025
Parties	Talen Energy (appellant) v. FERC; AEP and Exelon as intervenors
Status	Appeal pending (briefing completed August 2025)

background

ferc rejected (in a 2-1 decision on november 1, 2024) amendments to the interconnection service agreement for talen’s susquehanna nuclear plant that would have increased co-located load to amazon’s data center from 300mw to 480mw. ferc cited:

potential cost-shifting of up to $140 million/year to other pjm ratepayers
grid reliability concerns

talen appealed, arguing ferc’s orders rest on “fundamental legal errors.” ferc upheld its ruling again in april 2025.

restructured deal

on june 11, 2025, talen restructured the arrangement into a 17-year, $18 billion power purchase agreement with aws using a front-of-meter retail structure, effectively sidestepping the colocation issue. ferc issued a comprehensive colocation order on december 18, 2025, directing pjm to establish new rules.

significance

this case established the legal framework for behind-the-meter data center colocation at nuclear plants. the restructured deal demonstrates how the industry adapts to regulatory constraints, while the underlying policy question — who pays for grid infrastructure when data centers consume nuclear power — remains unresolved.

sources

last updated: february 22, 2026