Amazon Web Services (AWS) has announced plans to invest over $500 million in nuclear power, unveiling three projects spread across the United States, from Virginia to Washington state. As a subsidiary of Amazon, AWS focuses on cloud computing and requires a substantial amount of clean energy to support its growing services in generative AI, while also aiming for Amazon’s net-zero carbon emissions target.
AWS has entered into an agreement with Dominion Energy, a utility company based in Virginia, to explore the development of a small modular nuclear reactor (SMR) near Dominion’s North Anna nuclear power station. Nuclear reactors, such as SMRs, are advantageous due to their zero carbon emissions. An SMR, characterized by its smaller size, can be constructed nearer to the power grid and is quicker to build compared to traditional reactors.
Amazon’s move follows similar steps by other major tech companies seeking nuclear power to meet the increasing energy demands from data centers. Earlier in the week, Google announced an agreement to source power from Kairos Power, an SMR developer. Meanwhile, Constellation Energy plans to restart Three Mile Island to supply Microsoft data centers with energy.
Matthew Garman, CEO of AWS, stated that the need for gigawatts of power is projected to rise in the coming years, and current wind and solar projects may not suffice. Therefore, nuclear power offers a promising solution, with advancing SMR technology providing safe and manufacturable options in smaller forms.
Virginia hosts nearly half of the U.S.’s data centers, especially concentrated in an area dubbed Data Center Alley in Loudon County. With a notable portion of the world’s internet traffic passing through daily, Dominion Energy serves about 3,500 megawatts from 452 data centers in Virginia, most of which are in Data Center Alley. Dominion expects the demand for power to grow by 85% over the next 15 years, with AWS anticipating the introduction of at least 300 megawatts from the new SMRs in the region.
Virginia Governor Glenn Youngkin emphasizes the role of small modular nuclear reactors in turning Virginia into a leading hub for nuclear innovation, with AWS’s commitment being a significant step towards meeting the future power needs of the state’s growth.
AWS has further announced its collaboration with Energy Northwest, a consortium of state public utilities, to finance, license, and construct four SMRs in Washington state. These reactors are intended to provide energy directly to the grid, benefiting Amazon operations. Under this agreement, Amazon holds the right to purchase electricity from the first four modules, with Energy Northwest having the potential to expand to eight additional modules.
Maryland-based X-energy will provide the technology required for these SMRs and their fuel. Amazon’s Climate Pledge Fund plays a leading role in financing X-energy with a $500 million investment, alongside contributors like Ken Griffin, Ares Management Corp., NGP, and the University of Michigan.
J. Clay Sell, CEO of X-energy, remarked that through this partnership, Amazon and X-energy are set to shape the future landscape of advanced nuclear energy in commercial markets. He highlighted the importance of integrating clean, safe, and reliable energy to meet the rising demands enabled by artificial intelligence.
In alignment with AWS’s nuclear energy announcements, U.S. Energy Secretary Jennifer Granholm revealed the availability of $900 million in new funding to promote the deployment of more SMRs. Granholm underscored the significance of building data centers in the United States for national security and ensuring that the power fueling these centers is clean.
AWS’s investments in nuclear energy include a previous agreement with Talen Energy to purchase nuclear power from its Susquehanna Steam Electric Station in Pennsylvania and the acquisition of a nuclear-powered data center campus from Talen for $650 million.
