By I. Hansana, Jadetimes News
Talen Energy is seeking to sell its stake in a cryptocurrency mining operation powered by its Pennsylvania nuclear plant. The sale process, aimed at data center developers and cryptominers, is reported by three sources familiar with the matter.
The Nautilus facility is the first digital coin mining operation to be directly supplied with on site nuclear energy, a premium power source as major companies expand their AI and cloud computing businesses. Many tech companies pledge to power their data centers with clean energy, but also require uninterrupted operations. Unlike renewable sources, which are intermittent, nuclear power provides consistent, round the clock electricity without direct carbon emissions.
Following the $650 million sale of an adjacent data center and land to Amazon Web Services (AWS) in March, Talen is looking to attract buyers for its share of Nautilus. The sale allowed AWS to gradually access over 900 megawatts (MW) of electricity from Talen's 2.5 gigawatt Susquehanna nuclear plant.
Talen owns 75% of the 200 MW coin mining facility, with the remaining 25% owned by cryptominer TeraWulf. This capacity is enough to power about 160,000 homes. AWS now acts as the landlord for its cryptominer neighbors, who have a nine year lease and power purchase agreement at the site.
Talen did not respond to requests for comment, and AWS declined to comment. Sources indicate that if AWS buys out its tenants, it could quickly access the 200 MW of electricity, rather than waiting years. Other potential buyers would have to ride out the lease and then seek an extension from AWS.
The demand for data center capacity has driven up costs, with national average asking prices increasing about 19% year over year in 2023, and continued double digit growth expected this year, according to a CBRE Group report. This sector growth has also boosted share prices of power companies, especially those with nuclear fleets capable of striking deals similar to the AWS and Talen agreement.
