NEW YORK, Jan 28 (Reuters) - Talen Energy ( TLN ) is

asking a U.S. appeals court to weigh in on a decision by federal

regulators last year to reject a power agreement for an Amazon ( AMZN )

data center connected directly to Talen's Pennsylvania

nuclear plant, according to court filings this week.

As Big Tech attempts to quickly scale its massive AI data

centers, placing the centers directly at power plant sites in an

arrangement known as co-location has become an attractive

prospect for the industry to get massive amounts of electricity

fast.

Early last year, Talen sold Amazon ( AMZN ) the data center campus at

its Susquehanna nuclear generating facility in a deal that would

eventually allow the center to receive nearly 1 gigawatt of

electricity, which is roughly enough energy to power all of the

homes in Philadelphia.

The Federal Energy Regulatory Commission in December denied

Talen's request for an amended interconnection agreement that

would have allowed it to increase electricity supplies to the

data center.

While there are various ways to co-locate energy supplies,

the Talen deal would redirect electricity from the regional

power grid, which FERC said could worsen a supply and demand

imbalance on parts of the country's electric system.

Talen is now petitioning for a review of FERC's rejection,

including a rejected rehearing request, by the United States

Court of Appeals for the Fifth Circuit.

If the court takes up the request, it could result in FERC's

decisions being overturned or being kicked back to the

regulators for review. It could also result in the court

upholding the regulator's decision.