Big tech companies need lots of electricity for their data centers, which are processing increasingly complex artificial intelligence applications.

Adds share movement Amazon.com (NASDAQ:AMZN) has said it will continue to back a deal for an Amazon Web Services data center in Pennsylvania powered by Talen Energy's (NASDAQ:TLN) nuclear power plant.

Nuclear-power stocks fell after regulators voted against a deal between Amazon and Talen Energy. The deal would permit a Talen nuclear plant to provide an Amazon data center with extra power. Nuclear stocks have surged this year as AI data centers boost energy demand.

The Federal Energy Regulatory Commission (FERC) rejected an effort Friday to allow an Amazon data center to tap into additional power from a nearby Pennsylvania nuclear plant. The decision could throw a wrench in efforts by large technology companies to secure so-called “behind the meter” power from nuclear plants as they seek to meet

Microsoft's nuclear power partner Constellation Energy saw its stock drop on Monday as strong earnings couldn't overcome a ruling from the FERC late Friday that was pressuring nuclear stocks across the board.

Talen Energy Corp. and other US power company stocks slumped in pre-market trading Monday following the rejection by the country’s top energy regulator of Talen’s plan to supply a data center.

The Federal Energy Regulatory Commission has rejected a request to increase the energy sent to Amazon's data centers from a Pennsylvania nuclear plant.

Talen said it believed FERC had erred and was evaluating its options. The company can still restructure its expanded deal with Amazon, according to Oppenheimer analysts.