nuclear-news

This is why nuclear power stocks are falling

FINBOLD, 5 Nov 24

Nuclear power stocks faced a major downturn this week after the Federal Energy Regulatory Commission (FERC) rejected Talen Energy’s proposal to supply additional power to an Amazon Web Services (AWS) data center.

The decision, made late Friday, has reverberated throughout the sector, triggering a sharp sell-off in the nuclear power sector.

The FERC decision: A blow to the sector

On November 1, FERC voted 2-1 against PJM Interconnection’s proposed amendment to increase power supply from Talen’s Susquehanna nuclear plant in Pennsylvania to a nearby AWS data center. 

The amendment aimed to boost the center’s power capacity from 300 MW to 480 MW. Commissioners Mark Christie and Lindsay See opposed the amendment, citing concerns over grid reliability and public costs, while Chairman Willie Phillips dissented.

Following the decision, Talen Energy’s stock plunged 8.6% on November 5, while Constellation Energy (NASDAQ: CEG) and Vistra Corp (NYSE: VST) saw declines of 13% and 6.7%, respectively. 

These declines reflect investor concerns about the broader implications of the FERC decision, which could hinder future deals between nuclear power providers and large tech firms……………………..

Broader implications for the sector

The FERC decision has broader implications for the burgeoning relationship between nuclear power and AI-driven data centers.

In recent months, tech giants such as Amazon (NASDAQ: AMZN), Microsoft (NASDAQ: MSFT), and Alphabet (NASDAQ: GOOGL) have increasingly turned to nuclear power to meet the rising energy demands of AI data centers while maintaining their climate commitments…………………………………………………………………….
https://finbold.com/this-is-why-nuclear-power-stocks-are-falling/

November 7, 2024 - Posted by Christina Macpherson | business and costs