Amazon has recently announced agreements supporting the construction of a next-generation nuclear power plant in Washington, marking the latest development in the tech-driven resurgence of nuclear energy. The tech giant has a deal with Energy Northwest to fund the feasibility phase of a nuclear facility in central Washington, with the right to purchase electricity from the plant. Amazon is also investing in X-energy to scale its manufacturing capabilities to build more than 5 gigawatts of nuclear power in the U.S. by 2039. This move aligns with Amazon’s Climate Pledge commitment to be net-zero carbon by 2040.
Amazon, already the world’s largest corporate buyer of renewable energy, is expanding its portfolio to include nuclear energy to meet the growing demands of its operations and customers. This year, Amazon, Microsoft, and Google have all announced plans to purchase nuclear energy to fuel their data center operations due to the increasing computational demands of artificial intelligence. Nuclear energy is attractive because it does not produce carbon emissions and can operate 24/7, unlike other renewable energy sources like wind and solar power.
There is a renewed interest in small modular reactors (SMRs) by tech companies like Amazon, Google, and Dominion Energy due to their cost-efficiency and quick deployment compared to traditional reactors. Amazon has signed a deal with Dominion Energy to explore the possibility of building SMRs in Virginia. The investments from tech companies are expected to make additional nuclear projects easier and more affordable, helping clear the hurdle of first-of-a-kind deployments. The Washington project, with initial plans for four 80-megawatt reactors, aims to provide electricity to Amazon and Northwest utilities.
Despite the growth of clean energy sources, they are struggling to keep up with the rapid expansion of data centers in the U.S. This has led to coal power plants staying online in some areas, while natural gas is expected to meet most of the increased demand from data centers. The tech sector’s interest in nuclear energy is focused on meeting their data center operations’ demands, but their investments are expected to make carbon-free power more accessible in the region. Amazon’s investment in small modular reactors has been met with optimism for the future of the Northwest power grid by local utility managers.
Overall, Amazon’s recent agreements supporting the construction of a next-generation nuclear power plant in Washington reflect the growing trend of tech companies embracing nuclear energy to power their operations. This move aligns with Amazon’s commitment to be net-zero carbon by 2040 and addresses the increasing demand for electricity from data centers. The investments in small modular reactors are expected to make nuclear energy more accessible and affordable, providing a reliable source of carbon-free power for the region.
