Retail Supplier Affiliate Which Recently Launched Data Center Subsidiary Applauds Pennsylvania Data Center Tax Exemption

Talen Energy Corporation ("Talen" or "the Company"), which continues to operate as a retail supplier on a scaled back basis, and its newly created subsidiary Cumulus, applauded the enactment of an exemption of data center IT infrastructure investments from state sales and use tax in Pennsylvania.

The exemption was included in House Bill 952, which was recently signed into law

Cumulus Data, a subsidiary of Talen, is developing a 475 megawatt hyperscale data center campus located outside Berwick, Pa.

"We believe this legislation will allow Cumulus Data and other digital infrastructure companies in Pennsylvania to more effectively compete with the country's largest data center markets in Ashburn, Virginia and other rapidly growing cloud infrastructure hubs across the U.S.," said Alex Hernandez, CEO of Cumulus Data and President of Talen. "The combination of this legislation and the low-cost, reliable, carbon-free energy of our Susquehanna generation facility enables Cumulus Data to offer the lowest total cost of ownership and carbon-free ESG benefits to cloud, AI, and data center clients globally."

Talen announced recently that it has broken ground on the Cumulus Data center campus on land adjacent to its Susquehanna nuclear generating facility, located outside Berwick, Pa. The Cumulus Data digital campus will provide up to one gigawatt of carbon-free energy generated by Susquehanna's dual units to power the campus, including 475 Megawatts for hyperscale data center clients and 300 megawatts for other digital infrastructure applications. The first data center is expected to be commercially for lease in the second half of 2022.

Talen said that its Cumulus Data hyperscale data center campus is part of the Company's larger transformation to a more sustainable future. "This transformation, which was discussed during the Company's investor day in May, is centered on converting legacy fossil power generation facilities to clean power sources and investing in renewable energy, battery storage and digital infrastructure within its current asset footprint. Talen recently announced a joint venture with Pattern Energy to develop 1.4 Gigawatts of solar and wind generation across its footprint, including 400 Megawatts of solar generation in Pennsylvania. Talen's first 100 Megawatt solar project, located in Montour County, Pa., is anticipated to break ground in 2022 and provide renewables additionality to digital infrastructure clients of the Cumulus Data center campus," Talen said. Talen said that its approach includes converting, not closing, legacy generation facilities to cleaner energy sources