Amazon Web Services purchases Talen Energy's Cumulus data center campus

Mar. 7—WILKES-BARRE — Talen Energy Corp. recently announced the sale of its 960-megawatt Cumulus data center campus in Berwick to Amazon Web Services for $650 million.

"We are pleased to have sold our Cumulus data center campus, unlocking significant value for Talen," said Talen President and Chief Executive Officer Mac McFarland in a news release. "This transaction provides an attractive return on Talen's investment and vision in building Cumulus, and creates value through the sale of clean carbon-free power from our top-decile Susquehanna nuclear plant."

According to the investor presentation on Talen Energy's website, the deal comprises $350 million at close and $300 million escrowed, released upon development milestones anticipated in 2024.

The Talen presentation claimed the sale will have a positive impact on the broader community in three ways:

—Create full-time jobs and skilled construction jobs, with the potential to attract talent and other businesses to Pennsylvania.

—Catalyze significant economic development, including fiber, water and technology infrastructure and other local services.

—Strengthen the nuclear power plant, known as the Susquehanna Steam Electric Station, a major employer and significant local taxpayer in Salem Twp.

Talen Energy also said the long-term agreements with Amazon will create stable, incremental cash flows for the company.

Talen said it has agreed to continue to supply long-term, carbon-free power to the data center campus from the Susquehanna plant "through fixed-price power commitments."

According to Talen Energy, the plant was commissioned in 1983 for PPL, and is one of the largest nuclear power plants in the U.S.

Talen Energy, was founded in 2015 after the competitive power generation business of PPL Corp. was created and combined with competitive generation businesses owned by private equity firm Riverstone Holdings.

Reach Bill O'Boyle at 570-991-6118 or on Twitter @TLBillOBoyle.