Where the Electrons Come From
The headline deals, Microsoft with Constellation for the Crane restart, Meta with Constellation for Clinton, Amazon with Talen at Susquehanna, invite the impression that data centers now run on dedicated power plants. Mostly they do not. The Susquehanna arrangement was restructured and moved to front of the meter in April 2026, after the Federal Energy Regulatory Commission rejected an expanded behind-the-meter version in 2024, and most purchase agreements are financial as much as physical. On-site gas, as in Memphis, buys speed at the cost of permits and scrutiny. Faraday's read: weigh every supply choice against energy, capacity, delivery and time, and ask who pays for the grid that still sits underneath.
Knowledge check
How did Talen Energy and Amazon restructure their Susquehanna arrangement after the 2024 regulatory rejection?
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In June 2025 they announced a move from a behind-the-meter model to a front-of-the-meter one, which took effect in April 2026 after transmission work during the plant's spring refueling outage. Under it, Talen's plant output flows into the PJM grid, PPL Electric Utilities delivers power to Amazon's facilities, and Talen acts as the retail supplier for up to 1,920 megawatts through 2042. Amazon pays for grid service like other customers rather than drawing power directly from the plant.