Amazon is making a big bet on nuclear power to support its data center expansion, with plans to invest over $52 billion across three U.S. states. The company has entered agreements with Dominion Energy to explore the development of small modular reactors (SMRs) in Virginia and Washington state. Additionally, Amazon has invested $500 million in X-energy, a developer of SMRs, to bring 5 gigawatts of new power projects online by 2039 to meet the growing energy needs of artificial intelligence.
SMRs are seen as a cost-effective and carbon-free alternative to traditional nuclear power plants, making them attractive to tech giants like Amazon, Microsoft, and Google. Matt Garman, CEO of AWS, believes that nuclear power is a crucial option for scaling up energy needs and meeting the goal of net-zero emissions by 2040. While nuclear power does not emit greenhouse gases, the challenge lies in managing radioactive waste, as well as the high costs associated with building SMRs.
Despite the potential benefits of SMRs, none have opened in the United States yet, raising questions about their feasibility and expense. Energy research consultancy Wood McKenzie predicts that SMRs will play a small role in the power market through 2030, with only a few plants expected to be built by then. However, companies like X-energy and TerraPower are working to advance SMR technology, with plans to bring their projects online in the coming years.
Amazon’s partnership with X-energy and Energy Northwest in Washington and Virginia aims to develop multiple SMR projects to meet the increasing power demands of data centers. SMRs are scalable and can be deployed close to data centers, providing round-the-clock energy production. The collaboration between tech companies and energy providers highlights the potential for nuclear power to play a significant role in the transition to clean energy.
The demand for energy from data centers is expected to surge in the coming years, driven by the growth of artificial intelligence applications. Tech companies like Amazon are exploring nuclear power as a reliable and sustainable solution to meet their energy needs while reducing carbon emissions. As the industry continues to invest in advanced nuclear technologies, the future of SMRs in the power market looks promising.
By investing in SMRs and partnering with energy providers, Amazon is positioning itself as a leader in the adoption of nuclear power for data center operations. The company’s commitment to clean energy and sustainability aligns with its goal of achieving net-zero emissions by 2040. As the demand for energy continues to rise, SMRs could play a significant role in meeting the power needs of data centers and supporting the transition to a carbon-free future.
