Nuclear stocks Talen, Vistra and Constellation fall on data center decision

• Nuclear energy shares fell after regulators voted against the deal between Amazon and Talen Energy.
• The deal will allow the Talen nuclear power plant to provide additional electricity to Amazon’s data center.
• Nuclear energy inventories have risen this year as artificial intelligence data centers boost energy demand.

Nuclear energy shares fell on Monday after U.S. regulators blocked the plant from supplying additional power. Amazon data center

The Federal Energy Regulatory Commission rejected the deal between Amazon and Talen Energy at the end of last week. According to FERC Commissioner Mark Christie, approval of the proposal impacts of sparks on grid reliability and consumer costs.

Talen shares fell 8.6% on Monday, leading to a broader decline in the nuclear power sector. Vistra fell 6.7% to intraday lows, while Constellation Energy fell by 13%.

These companies have benefited dramatically as artificial intelligence data centers have taken over the US. Electricity demand has reached new heights. In recent months, technology companies have begun using nuclear energy to power these centers, fueling underlying stocks.

Both Vistra and Constellation are among the top performers in the S&P 500 this year. Similar to Talen, Constellation entered into a 20-year contract with Microsoft to power your data center in

But FERC’s decision sets a precedent that could challenge deals with nuclear data centers.

“FERC’s decision will have a chilling effect on economic development in states like Pennsylvania, Ohio and New Jersey,” Talen said. says the statement.

According to BloombergIn March, Amazon Web Services already paid the firm $650 million for a data center campus near the Pennsylvania plant in question. AWS also signed a long-term agreement to purchase power from the plant.

Shares of other nuclear companies also took a hit on Monday: the Sam Altman-backed company Oklo And Nanonuclear energy both are down double digits.