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(Added comments and details from Constellation Energy on co-location from paragraph 3)
Constellation Energy will continue seeking deals to develop data centers at the sites of its U.S. power plants, days after federal regulators dealt a blow to so-called co-location agreements, company executives said Monday.
The Federal Energy Regulatory Commission on Friday rejected a deal to increase the energy capacity of an Amazon data center connected directly to Talen Energy’s nuclear power plant in Pennsylvania, a decision seen as a brake on deals similar.
Constellation said it was seeking guidance from regulators after FERC’s ruling on co-location, which has become a promising way for Big Tech to access large amounts of power for its AI expansion instead of wait years to interconnect.
“We will continue this steady clarity while simultaneously pursuing business strategies for colocation that are permitted by our existing rules,” Joseph Dominguez, Constellation’s chief executive, said during a company earnings call.
“There are multiple regulatory and commercial pathways to address co-location issues, and we will work quickly with customers and other stakeholders to put them in place
Constellation CEG.O, which is the largest operator of nuclear power plants in the United States, had backed Talen in the regulatory battle. Shares of nuclear power plant operators have soared this year, driven in part by the prospect of developing co-located data centers.
Constellation shares were down about 10% on Monday.
FERC was approached by electric companies Exelon and American Electric Power, which opposed the Talen-Amazon data center interconnection deal, saying it threatened to increase electricity bills for ordinary customers and erode network reliability.
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