Talen Energy Proposes Stake in Nuclear-Powered Crypto Mining Campus, Sources Indicate – Reuters

By Laila Kearney

NEW YORK (Reuters) – Talen Energy is exploring the sale of its stake in a cryptocurrency mining operation that utilizes power from its Pennsylvania nuclear facility, aiming to attract interest from both data center developers and cryptocurrency miners, according to sources familiar with the matter.

The Nautilus facility is notable for being the first digital coin mining operation powered directly by on-site nuclear energy, which has gained attention as a preferred energy source amid the rush for clean power by leading technology companies expanding their artificial intelligence and cloud computing capabilities.

Many tech firms have committed to using renewable energy to power their data centers, but they also require reliable, uninterrupted energy supply. Since renewable sources only generate power when conditions are favorable, nuclear power has become an attractive alternative due to its consistent output and lack of direct carbon emissions.

Talen aims to draw potential buyers for its portion of Nautilus following the sale of an adjacent data center and land to a major tech company, a deal that was announced in March. This $650 million transaction enables the company to provide over 900 megawatts (MW) of electricity from its 2.5 gigawatt Susquehanna nuclear plant, phased in over several years.

Talen owns 75% of the Nautilus facility, with the remaining 25% held by the cryptocurrency miner TeraWulf. The facility has a total capacity of 200 MW, enough power for approximately 160,000 homes. The sale also made the tech giant the landlord of its mining neighbors, who have a nine-year lease and power purchase agreement at the site.

Requests for comments from Talen Energy went unanswered, and the other tech company also declined to comment.

Should the tech giant choose to buy out its tenants, it could quickly secure the full 200 MW of electricity instead of waiting through a multi-year process. Other potential buyers would likely have to wait out the existing lease and subsequently negotiate any extensions.

The increasing demand from the technology sector has led to a rise in energy costs. The national average asking prices for data center capacity increased about 19% year-over-year in 2023, with expectations of continued double-digit growth throughout the year, according to a report.

The growth in cryptocurrency mining has positively impacted the stock prices of power companies, particularly independent firms with nuclear capabilities that can enter into similar agreements as the one between the tech giant and Talen. As a result, Talen’s stock has surged more than 90% this year.