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The tech giant’s $650 million deal with Talen Energy has a lot to unpack.

When Talen Energy, which owns a 90% interest in the Susquehanna nuclear power plant in Northeastern Pennsylvania, announced it was selling a data center site adjacent to its power plant to Amazon Web Services, it raised some eyebrows in the energy world. The surprise was not because a large tech company made a big deal with a carbon-free power provider, or even that a tech company made a deal to buy power generated by a nuclear power plant. It was because Amazon was making this deal.
Amazon is a massive buyer of renewable power — it claims to be the world’s largest and says it’s responsible for 28 gigawatts of clean energy capacity — signing contracts with new wind and solar projects all over the world.
But a divide has opened up among tech giants when it comes to energy, with Amazon on one side and Alphabet and Microsoft on the other. The difference hinges on how much it matters where and when the new carbon-free power a company buys in order to match its electricity use.
What’s odd about the Talen deal is that it fits awkwardly into either approach, especially Amazon’s. Amazon does not count nuclear towards its renewable power goals, and in any case, it’s not a “new” source of carbon-free power. Instead, it allows Amazon to siphon somewhere between 480 and 960 megawatts of capacity from the 2,500 megawatt plant.
“Amazon needs power, they’re getting it at cheap rates. They don’t even want to talk about it like a climate thing,” Mark Nelson, the founder of Radiant Energy Group, told me.
In the past decade or so, technology companies have gone on a clean-power buying spree, funding new wind and solar projects all over the world. But there has been a divergence in what is thought to be the best way to go about it.
In 2019, Amazon announced a goal to add enough renewable power to the grid to match its own emissions by 2030 (since moved up to 2025) and to reach net zero by 2040.
Google has been 100% renewable in terms of buying clean power in the same amounts that it consumes since 2017. So in 2020, it set a new goal: to “run on 24/7 carbon-free energy on every grid where we operate by 2030.” This would mean not just matching total renewable purchases with total emissions, as Amazon is seeking to do, but also trying to get every hour of data center operation “matched” with an hour of renewable generation on the same grid.
Microsoft has a similar goal, and as a result, both companies have shown much more interest in nuclear power of late than is typical in the technology world.
“A huge bottleneck for growth for Amazon, Google, Microsoft, Facebook is access to constant electricity,” Nelson told me. Nuclear is a carbon-free electricity resource that can run at a steady output 24 hours a day, whereas wind and solar are both inherently variable.
Microsoft signed a deal with Constellation to supply power to data centers in Virginia and hired an official from the Tennessee Valley Authority to be its director of nuclear and energy innovations, while Microsoft founder Bill Gates and Sam Altman, the head of Microsoft-backed OpenAI have both invested in nuclear startups, as has Google.
Amazon’s approach — which it shares with several other large companies, including Meta — is not to match 24 hours of its operations with clean power bought locally, but rather to develop and purchase new wind and solar at the same scale of the power it consumes, especially in areas with dirty grids, thus matching the emissions from its consumption with the emissions reductions of new renewables projects. While a 24/7 matching approach may be naturally complementary with nuclear power, Amazon’s strategy doesn’t require it.
“We believe a focus on emissions is the fastest, most cost-effective and scalable way to leverage corporate clean energy procurement to help decarbonize global power grids at the fastest pace,” an Amazon spokesperson told me. “This includes procuring renewable energy in locations and countries that still rely heavily on fossil fuels to power their grids, and where energy projects can have the biggest impact on carbon reduction.”
Contracting out new renewable energy projects can have more bang for your buck in dirty grids, according to proponents of the Amazon philosophy, known as carbon matching. The hypothesis is that a renewable project in a fossil fuel-heavy grid will displace more dirty power than one that’s located near a datacenter in an already relatively clean grid like California or Washington State.
Princeton researchers who examined the carbon matching (Amazon) and temporal matching (Google and Microsoft) strategies argued that the carbon matching approach does not necessarily lead to more renewables — or less fossil fuels — on the grid than would have occurred in the absence of the tech companies, and thus does not actually greatly lower emissions. The temporal approach, on the other hand, can meaningfully displace fossil fuel power that would otherwise have to be on the grid to meet demand.
Nuclear advocates are clear-eyed that this deal won’t cause a new generating unit to sprout up out of the Susquehanna Valley. But they still see it as the kind of deal that can help ensure nuclear plants’ continued survival. Amazon’s $650 million buys it a 10-year agreement to purchase power from the plant, as well as “additional revenue from AWS related to sales of carbon-free energy to the grid,” which an Amazon spokesperson explained as a reference to the deal “ensur[ing] that the nuclear plant has stable revenues to continue generating clean power to the grid for the foreseeable future.”
Nelson, a passionate advocate for nuclear power, lamented the mass shutdown of nuclear power plants in the 2010s thanks to cheap natural gas knocking them out of power markets that didn’t value reliability or carbon-free energy. But now, he says, things are different.
“Now nuclear is getting valued for its climate properties, reliability, and low cost. We’re seeing nuclear plants cash in,” Nelson told me. “Long term PPAs with cold hard cash help me sleep better at night.”
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“We will not cease exports of U.S. diesel,” the Secretary of Energy told us at Heatmap House.
Secretary of Energy Chris Wright threw cold water on a potential diesel export ban, telling Heatmap executive editor Robinson Meyer that the president “didn’t endorse it.”
“We are open to any ideas to lower energy prices for Americans,” Wright said at our Heatmap House event at New York Climate Week. “We have a continual, thoughtful dialog based on the facts on the ground of what are the most practical steps moving forward, and it looks like right now we do need to grow the diesel supply in the United States.”
There could be some adjustments to the diesel industry, Wright told Rob, saying there may “be some tweak in where diesel flows out of U.S. refineries.” About a full-scale ban, however, he was unequivocal. “We will not cease exports of U.S. diesel.”
That stands in contrast to President Trump’s remarks Tuesday, when he told reporters, “I’ve said, ‘Let’s not send out the diesel.’ I’ve called for it. I’ve called for it within my people.” Politico reported Wednesday afternoon that the administration is “preparing” a 90-day export ban.
When asked if a diesel export ban would hurt America’s reputation as an energy superpower, Wright told Heatmap, “It certainly would have impacts.” But, he added, “I don’t think there’s serious consideration, although there’s always been a dialogue. I don’t think you will see a blanket ban on diesel. And yes, of course, we want to be the energy superpower supplying the whole world.”
Some Republicans in Congress have called for a diesel export ban, including Iowa Senator Chuck Grassley, who represents agriculture-heavy Iowa. High diesel prices impose a particularly large cost on two groups: farmers and New Englanders. Farmers need diesel to fuel equipment to harvest crops and trucks to move their goods, while millions of New Englanders rely on heating oil — which is virtually interchangeable with diesel — to heat their homes in the winter. Bills for heating oil may exceed $2,000 this winter, according to Mark Wolfe, the executive director of the National Energy Assistance Directors Association
Diesel prices today are sitting at just over $6.50 per gallon, according to AAA, up from $3.69 a year ago and $5.60 just a month ago.
The former vice president joined us at Heatmap House at New York Climate Week to talk about electric vehicles, artificial intelligence, and why clean energy will ultimately win.
In front of a packed room at Heatmap House on Wednesday morning, former Vice President Al Gore made the case for optimism on climate change.
“There is a possibility we will look back on this year of 2026 as the positive tipping point on climate,” he said.
He started with some high water marks in renewable energy and electric vehicles. Last year was the first year that the production of energy from renewable sources exceeded the overall increase in global energy demand, for example. Whereas 20 years ago, when Gore’s landmark climate change film An Inconvenient Truth premiered, there were virtually no electric vehicles on the road, by the end of this year about 30% of all new cars sold globally will be EVs.
On top of that, he later added, “the war in Iran marks the second time in four years that the fossil fuel supply chain has been disrupted, and price volatility has returned, and people around the world have reacted to this and in a really dramatic way.” Just in the past six months, EV sales reached record levels in 50 countries; Korea’s president committed to speed its transition off fossil fuels; Thailand announced a shift from liquified natural gas to renewables; and solar is booming in Africa.
“These are signs that this thing is really moving into high gear,” he said. “The fossil fuel industry is losing, they know they’re losing, and they’re trying to slow down how quickly they lose.”
Gore was also surprisingly hopeful about artificial intelligence, arguing that data centers were a cause for concern but “not a justification for panic.” He’s not convinced that the carbon emissions from powering artificial intelligence will have a decisive impact on our climate trajectory, and is far more worried about “cognitive atrophy and the emergence of an intelligence that makes us no longer the apex intelligence on the planet.”
The conversation with Gore followed an interview with one of his climate champion descendents, so to speak. Mikie Sherrill, the governor of New Jersey, showed off her energy bona fides in a conversation about her approach to affordability and data centers. She talked up her administration’s swift approvals of solar and battery projects to ensure they made the deadline for federal tax credits, lifting the state’s moratorium on nuclear, and implementation of virtual power plants.
“There is a crisis going on, so you cannot simply say to people, ‘Sorry, your bills are just going to keep skyrocketing,’” she said. “That is not the answer, which is why we’ve acted so aggressively.”
Sherrill also criticized data center developers for the way they have frequently come into the state without engaging with communities. “I told a data center, I said, ‘You guys have been horrible at it. I’m just telling you, nobody knows what a data center is, and you need to explain why it's even important. Are you curing cancer? What are you doing? Why is this a societal benefit?’”
She encouraged future Democratic candidates for public office to make sure they have a deep understanding of the specific energy circumstances of their state, and to speak to that on the campaign trail. “The can has been kicked down the road on too many different issues, and if you were going to try to duck your head and say some mealy-mouthed thing like, ‘We’re going to do all of the above’ and ‘Everyone's welcome and we like business,’ that’s not going to cut it.”
On offshore wind lawsuits, transmission woes, and a nuclear IPO
Current conditions: A potential nor’easter is barreling toward New York City, potentially hitting the five boroughs just as world leaders gathered for the United Nations General Assembly get set to fly home • Hurricane Polo has rapidly strengthened into a Category 5 storm off Mexico’s Pacific coast, threatening flooding, winds, and storm surge • Yet another tropical storm is forming off the coast of Hawaii, risking mudslides and flooding.
The air is crisp here in Manhattan. UN representatives are grandstanding. And many of the biggest names in energy and climate are gathering alongside my colleagues at Heatmap House, our day-long summit for New York Climate Week. Some of the talks today include:
You can join the waitlist to come in person by registering here. And you can register to watch the livestream here.

In his opening address to the annual gathering of nearly all the world’s nations in New York, United Nations Secretary General António Guterres called for an end to what he desscribed as “the most profound intergenerational power imbalance of all.” Climate change, he said, has led to “one group profiting, while those least responsible suffer first and worst.” The former Portuguese prime minister from the Iberian country’s leading center-left party highlighted last month’s catastrophic flood in Nepal as an example of the unfair toll global warming is taking. “As tragic events have shown, impacts are arriving sooner, hitting harder, and spreading further than many anticipated. Now we face a near certain breach of the 1.5-degree limit, with a supersized El Niño speeding straight for humanity,” he said. “The dangers are real. But so is the hope.”
President Donald Trump struck a decidedly different tone in his remarks to the assembly. In a characteristically fiery speech defending the U.S. war with Iran, he vowed to “annihilate the Islamic Republic “ or “drive them into hell with no chance of survival” if Tehran doesn’t agree to a peace deal with Washington soon — and that doing so would bring down oil prices. “If we stand united, we will soon see a world free of the last 51-year menace of Iranian terror,” Trump said. “And oil prices will come plummeting down even lower than they were at the start of the conflict. And they were very low in the United States. They were really low. With courage and resolve, anything is possible.” As an example, he pointed to what he called the largest oil deal in history with Venezuela last month. “When you add the United States and Venezuela together, we have more than 60% of the oil in the world,” Trump said. “So it’s perhaps the biggest deal. It was a war, but it’s perhaps the biggest deal ever made. To the victor belong the spoils.” Among the other spoils the president sees: Tuesday’s signing of his updated deal with Greenland to permanently bar Russian, Chinese, and other adversaries from making large-scale investments or setting up military outposts on the Danish-controlled Arctic island.
Back in June, New York Attorney General Letitia James filed what my colleague Emily Pontecorvo clocked as the first major state lawsuit challenging any of the Trump administration’s series of deals to pay offshore wind developers to abandon their projects. The lawsuit zeroed in on TotalEnergies and the $1 billion the Department of the Interior offered for the French giant to walk away from two proposed projects. On Tuesday, Albany announced two more lawsuits seeking to block deals with the developers Bluepoint Wind and Invenergy that, combined, would equal “$1.4 billion in taxpayer dollars in exchange for canceling four critical offshore wind projects.” New York Governor Kathy Hochul, who joined the lawsuit, admonished “the Trump administration’s unlawful pay-to-not-play scheme to pressure companies to forgo planned offshore wind projects in America,” which she called “an outrageous abuse of taxpayer dollars that hurts our ability to meet our energy needs.”
That same day, California Attorney General Rob Bonta filed a lawsuit over the Interior Department’s deal with Invenergy to kill off what would have been one of the first major offshore wind projects on the West Coast. “At a time when we need more reliable, clean energy, President Trump is trying to send $111 million dollars to his fossil fuel industry friends and wants taxpayers and working families to cover the tab,” Bonta said in a press release. “This outrageous abuse of taxpayer dollars will damage the offshore wind industry and create unnecessary obstacles to clean and reliable energy powering our homes and economies.” Both states explicitly tied the timing of the lawsuits to New York Climate Week, the five-day series of events around Manhattan that are tied to the UN General Assembly and seen as the aperitif for November’s global climate talks in Turkey.
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A 190-mile transmission line stretching across Wisconsin is drawing blowback from Democrats and Republicans. The state’s congressional delegation is increasingly aligned. Representative Mark Pocan, a Democrat, said Midcontinent Grid Solutions’ outreach to residents on the power line “does not match the scale of the project’s impact on their land, their livelihoods, and their communities,” the Milwaukee Journal Sentinel reported. Senator Tammy Baldwin, another Democrat, called for a “slowdown” of the development process. On the other side of the aisle, Republican Representative Derrick Van Orden has backed a full moratorium on the project.
Coincidentally, Trump has signaled he’s willing to ease the administration’s blockade on renewables in a bid to secure a federal permitting deal with Democrats, Politico reported Tuesday. Two unnamed sources told the outlet that Trump has agreed to direct the Department of Defense to start clearing its queue of long-delayed onshore wind projects. My colleague Jael Holzman reported last week that, despite a court ruling ordering the military to resume its reviews, the administration hasn’t yet.
It was a bullish time for nuclear, it was a bearish time for nuclear. Billions of dollars are flowing into projects and ideas for reactors are proliferating as has not been seen since the mid-20th century atomic power buildout in North America, Europe, and East Asia. But startups debuting on the stock market are falling far short of expectations. Fuel maker Standard Nuclear went public in July in what Bloomberg called “a downsized U.S. IPO,” while the Amazon-backed next-generation reactor company X-Energy has fallen nearly 40% below its IPO price. America’s nuclear champion, Westinghouse, is still eyeing a $50 billion valuation ahead of a potential IPO. But it remains unclear whether that deal will ultimately go through. The market uncertainty isn’t stopping one of Europe’s most advanced nuclear startups from going public in the U.S. On Tuesday, Newcleo listed on the Nasdaq after completing a $247 million deal with a special purpose acquisition company, or SPAC, essentially a cheat code for a swift IPO that involves merging with an already-traded black-check company and thus allowing the firm to avoid the months of due diligence with investment bankers that typically precedes a stock market debut. Newcleo CEO Stefano Buono called the deal “a new steppingstone that sets up” the company “for long-term success.”
For fusion no longer to be “the energy source of tomorrow that always will be,” as the old joke goes, the startups promising to bring about the so-called holy grail of clean power need to scale up supply chains. Inertia, the fusion startup that formed with much of the team of U.S. government scientists that pulled off the historic 2022 breakthrough that made fusion energy a possibility, is now laying the groundwork for commercialization. On Tuesday, the company, led by former Twilio CEO Jeff Lawson (yes, the same one that’ll be at Heatmap House), announced what it called “close collaborations” with three companies to begin manufacturing the lasers needed for Inertia’s fusion power plants at scale. “These are the first of many industrial collaborations we will coordinate to bring the scale of mass manufacturing to industrialize the laser fusion energy supply chain,” the company said.