NEW YORK, April 11 (Reuters) - U.S. energy regulators

this week denied a request to reconsider a decision that blocked

an Amazon ( AMZN ) data center, connected directly to a Talen

Energy ( TLN ) nuclear power plant in Pennsylvania, from ramping

up its power use, government filings show.

Big Tech's race to secure massive amounts of electricity to

fuel its AI data centers has led to unprecedented arrangements

with power companies, including new types of so-called

co-located deals, where the giant computer warehouses are

powered right from the power source.

The arrangements have promised to speed up the technology

industry's artificial intelligence expansion by eliminating wait

times to connect to the broader grid and have propelled company

shares of independent power companies like Talen on the prospect

of signing multiple co-located power deals.

Members of the Federal Energy Regulatory Commission have

voiced concern about how the Amazon ( AMZN ) data center, which diverts

electricity from the broader grid, might affect power

reliability and costs for the general public. In November, FERC

rejected Talen's request to increase power supplied to the

Amazon ( AMZN ) data center beyond 300 megawatts.

When Talen Energy ( TLN ) sold the data center to Amazon ( AMZN ), the

company said the facility could use almost 1,000 megawatts of

energy supplied directly from Talen's Susquehanna nuclear

facility.

FERC, on Thursday, denied Talen's request for a rehearing on

the matter. The commission is still considering broader rules

governing co-located data centers.