The Co-Location Conundrum

Jeff Johnston and Teri Viswanath

January 7, 2025

Data centers are the foundation of a digital economy but powering them is this decade’s challenge. Large power plant operators argue that U.S. dominance in AI depends upon nuclear co-location opportunities. Yet FERC’s recent decision blocking the Susquehanna nuclear plant from diverting power to Amazon’s data center highlights the regulatory challenges of these off-grid solutions.

CoBank experts Jeff Johnston and Teri Viswanath untangle key elements of that decision, highlighting the potential impacts ahead for electricity providers, data centers and ratepayers.

 
 

Disclaimer: The information provided in this report is not intended to be investment, tax, or legal advice and should not be relied upon by recipients for such purposes. The information contained in this report has been compiled from what CoBank regards as reliable sources. However, CoBank does not make any representation or warranty regarding the content, and disclaims any responsibility for the information, materials, third-party opinions, and data included in this report. In no event will CoBank be liable for any decision made or actions taken by any person or persons relying on the information contained in this report.

 
 
 
 

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