Amazon invests in nuclear power to meet growing data centre demands

Amazon has announced a significant investment in nuclear power technology, signing agreements to develop small modular reactors (SMRs) in multiple locations across the US.

The move comes as the tech giant seeks to meet the surging electricity demands of its data centres while progressing towards its goal of net-zero carbon emissions by 2040.

The company’s cloud computing arm, Amazon Web Services (AWS), is investing more than $500 million in nuclear power projects, including agreements in Virginia and Washington state. Matthew Garman, chief executive officer of AWS, explained the rationale behind the investment: “We see the need for gigawatts of power in the coming years, and there’s not going to be enough wind and solar projects to be able to meet the needs, so nuclear is a great opportunity.”

In Virginia, Amazon has partnered with Dominion Energy to explore the development of an SMR project near the existing North Anna nuclear power station. The project aims to bring at least 300 megawatts of power to the region, where Dominion projects power demands will increase by 85 per cent over the next 15 years.

Virginia Governor Glenn Youngkin praised the initiative, stating, “Small modular nuclear reactors will play a critical role in positioning Virginia as a leading nuclear innovation hub. Amazon Web Services’ commitment to this technology and their partnership with Dominion is a significant step forward to meet the future power needs of a growing Virginia.”

In Washington state, Amazon has signed an agreement with Energy Northwest, a consortium of state public utilities, to fund the development of four advanced SMRs. These reactors are expected to generate roughly 320 megawatts of capacity initially, with the option to increase to 960 megawatts total – enough to power the equivalent of more than 770,000 US homes.

The SMRs in Washington will be developed using technology from X-energy, a leading developer of next-generation SMR reactors and fuel. Amazon’s Climate Pledge Fund is leading a $500 million financing round for X-energy, with other investors including Citadel founder and chief executive officer Ken Griffin.

J. Clay Sell, chief executive officer of X-energy, commented on the partnership: “Amazon and X-energy are poised to define the future of advanced nuclear energy in the commercial marketplace. To fully realise the opportunities available through artificial intelligence, we must bring clean, safe, and reliable electrons onto the grid with proven technologies that can scale and grow with demand.”

US Energy Secretary Jennifer Granholm announced $900 million of new funding available for those looking to deploy more SMRs, emphasising the importance of clean power for data centres: “We want these data centres to be built in the United States for a variety of reasons, including national security reasons. We need additional power to be able to do that, and we want that power to be clean power.”

As Amazon continues to expand its services into generative AI and other power-intensive technologies, these investments in nuclear energy are expected to play a crucial role in meeting the company’s growing energy needs while supporting its commitment to sustainability.