Talen Energy gains on new power purchase agreement with Amazon

Shares of utility Talen Energy TLN.O rise ~9% to $278 premarket

Company says it has expanded existing nuclear energy relationship with Amazon.com AMZN.O to provide carbon-free energy from its Susquehanna nuclear power plant to Amazon Web Services data centers in the region

Under the new power purchase agreement, Talen will provide Amazon with 1,920 megawatts of nuclear power through 2042, with options to further extend its duration

Both the companies will also explore building Small Modular Reactors within Talen's Pennsylvania footprint and pursue expanding the nuclear plant's energy output

As of last close, TLN shares up 26.6% YTD