NEW YORK (Reuters) - Constellation Energy will continue to pursue deals to develop data centers on the sites of its U.S. power plants, days after federal regulators dealt a blow to the so-called co-located arrangements, company executives said on Monday.

Constellation Energy ( NASDAQ: CEG) will continue to pursue deals to develop data centers on the sites of its U.S. power plants, even after the Federal Energy Regulatory Commission ruled against "co-located" arrangements, company executives said Monday, according to Reuters.

Supporting the development of data centers — including providing the enormous amounts of electricity they require — is a matter of national security, a top federal energy regulator said.

Costs and reliability concerns related to the burgeoning trend of building energy-intensive data centers next to U.S. power plants were the focus of a technical conference held on Friday by the Federal Energy Regulatory Commission.

U.S. energy regulators rejected an amended interconnection agreement for an Amazon data center connected directly to a nuclear power plant in Pennsylvania, a filing showed on Friday. Members of the Federal Energy Regulatory Commission said the agreement to increase the capacity of the data center located on the site of Talen Energy's Susquehanna nuclear generating facility could raise power bills for the public and affect the grid's reliability.

Big data centers in Ohio will have to pay a minimum of 85% of the energy they need to cover the costs of grid improvements under a settlement submitted Wednesday by one of the state’s largest utilities.

Costs and reliability concerns related to the burgeoning trend of building energy-intensive data centers on the sites of U.S. power plants were the focus of a technical conference held on Friday by the Federal Energy Regulatory Commission.