Talen Energy Corporation and its wholly-owned subsidiary Cumulus Growth have announced that they have taken additional steps forward in capitalising and executing Talen’s strategic transformation to renewable energy and digital infrastructure growth platform. Cumulus Growth has secured a 6-year, up to $175 million strategic capital partnership with Orion Energy Partners.
The Investment from Orion will be used to fund common infrastructure for the company’s hyper-scale data centre campus located adjacent to Talen’s 2.5 Gigawatt Susquehanna carbon-free nuclear plant. Up to $125 million of the Orion capital will be available following closing and an additional $50 million will be available once agreed milestones have been satisfied.
“We are pleased to partner with Talen and Cumulus Growth on this exciting and differentiated ESG transformation,” Nazar Massouh, CEO and co-managing partner of Orion, said. “Our firm was built on the core principle of funding energy transition and environmental innovation across infrastructure assets by partnering with exceptional management teams, entrepreneurs, and operators. We believe the Cumulus Growth strategy and infrastructure assets under development offer significant competitive advantages in accelerating the convergence between the clean power and digital infrastructure sectors.”
“We are grateful for the capital, partnership and confidence of Nazar Massouh and the entire Orion team,” Alex Hernandez, CEO of Cumulus Growth and President of Talen, said. “We have broken ground on the Cumulus data centre campus, which will provide carbon-free energy generated by Susquehanna’s dual units to power the campus, including up to 475 Megawatts for hyper-scale data centre clients and 300 Megawatts for coin mining and other blockchain applications. The Cumulus data centre investment will create family-sustaining jobs, technology training, and other economic benefits including tax revenue and increased consumption of local goods and services to both Pennsylvania and the surrounding community. The first two Cumulus data centres, one for hyper-scale cloud and another for coin applications, are expected to be completed by the second half of 2022.”