NEW YORK, July 5 (Reuters) - Talen Energy ( TLNE ) has
asked U.S. regulators to reject a challenge to its recent Amazon ( AMZN )
data center deal, which is being opposed by a group of
electric utilities that say the agreement could raise power
bills for the general public, according to a filing on Friday.
Talen said the challenge, brought by utilities including
American Electric Power ( AEP ) and Exelon ( EXC ), was
inaccurate and that its interconnection agreement for the Amazon ( AMZN )
data center site would not cause grid reliability problems or
spiking power costs for the utility customers.
"It is an unlawful attempt to hijack this limited
interconnection service agreement amendment proceeding that they
have no stake in and turn it into an ad hoc national referendum
on the future of data center load," Talen said in its filing
with the Federal Energy Regulatory Commission.
Technology companies are in a race to access massive amounts
of electricity supplies to power and cool the data centers, or
giant computer warehouses, needed to roll out technologies like
generative AI. Nuclear energy, which is virtually carbon free
and provides around-the-clock power, has become a top pick for
the data center industry.
Talen announced in March that it had entered into an
agreement to sell electricity and a data center campus located
at its Pennsylvania nuclear power plant to Amazon Web Services.
The deal would provide Amazon's ( AMZN ) computer warehouses with an
electric capacity of up to 960 megawatts, or enough to power
about a million homes.
A handful of electric utilities, including American Electric
Power ( AEP ) and Exelon ( EXC ), last month asked FERC to hold a hearing to
more deeply scrutinize Talen's interconnection agreement with
Amazon ( AMZN ) or deny it outright. The group said the interconnection
agreement for the data center could result in a $140 million per
year cost shift to everyday ratepayers.