Amazon announced a strategic partnership with nuclear reactor specialist X-energy and utility company American Electric Power (AEP) to explore and deploy Small Modular Reactor (SMR) technology in the U.S. state of Indiana. The joint project aims to build 12 reactors of the Xe-100 model, with a total capacity of up to 960 megawatts of zero-carbon energy, to power both the regional power grid and Amazon's data centers.
This move is the second project within a broader collaboration between Amazon and X-energy seeking to add more than 5 gigawatts of new nuclear capacity to the U.S. power grid by 2039, following the Cascade Advanced Energy facility project in Washington state. Amazon will play the role of the financier for the project's development and will be the anchor customer to purchase the clean energy generated by it once operational.
Why is Amazon Investing in Nuclear Energy?
This trend comes amid rapid growth in electricity demand, driven by electrification and massive expansion in the artificial intelligence sector, which requires clean and stable power sources that operate around the clock. The Xe-100 reactor relies on helium cooling technology and TRISO-X fuel, which is classified by the U.S. Department of Energy as extremely robust nuclear fuel capable of withstanding extreme temperatures without melting or requiring human intervention or active safety systems to prevent a meltdown.
These reactors are also characterized by high flexibility in cooling systems, allowing them to be deployed even in areas suffering from water scarcity without competing with local communities for their natural resources.
What Changes Practically for Users?
The project will be established on the site of the former coal-fired Breed Generating Station in Sullivan County, Indiana, contributing to the creation of over 1,000 construction jobs and more than 100 permanent jobs. As part of its environmental and economic commitments, Amazon has committed to paying the full costs of data center service without burdening local consumers with any additional financial costs, which has already been reflected in AEP's plans to lower and freeze residential electricity prices in the region.