Amazon’s endeavor to power its US datacenters with nuclear energy has met a significant challenge. Federal regulators have blocked a proposal to extend its power draw from Pennsylvania’s Susquehanna nuclear facility, citing potential risks to grid reliability and higher energy costs. The Federal Energy Regulatory Commission (FERC) dismissed an amended service agreement designed to boost power for the Cumulus datacenter, acquired by Amazon for $650 million. Concerns were raised by utility firms American Electric Power and Exelon over preferential treatment for the Cumulus site, possibly diverting energy from the regional grid. Despite assurances from PJM Interconnection, the regional grid operator, that additional power demand wouldn’t harm the grid, objections persisted. FERC expressed doubts about the necessity of these amendments without concrete justifications. FERC Chairman Willie L. Phillips dissented, arguing the decision could undermine the US’s AI advancement due to inadequate infrastructure, while Commissioner Mark C. Christie noted the complex issues co-located sites pose for grid stability and costs. Amazon’s aspirations include deploying small modular reactors across its datacenters, with ongoing investments in nuclear technology. This setback exemplifies the power availability challenges datacenter operators face alongside the rapid growth of AI technology demands.