Talen Energy Corporation has announced an expansion of its nuclear energy partnership with Amazon, involving a power purchase agreement for 1,920 megawatts of carbon-free electricity.

Talen Energy shares jumped 5.4% in premarket trading.

This agreement will provide power from Talen's Susquehanna nuclear power plant to Amazon Web Services (AWS) data centers in Pennsylvania and is set to run through 2042, with options for extension.

The delivery of power will increase over time, reaching full capacity by 2032, potentially earlier. This deal is expected to reduce Talen's market risk and reliance on federal tax credits.

Additionally, Talen and Amazon will explore the development of Small Modular Reactors (SMRs) and expansion of the nuclear plant's energy output.

The project is supported by Pennsylvania Governor Josh Shapiro, who highlighted its potential to create jobs and stimulate economic growth in the state.