Amazon Web Services, under the leadership of CEO Matt Garman, recently announced agreements to promote the expansion of next-generation nuclear power in Virginia. The U.S. Energy Secretary Jennifer Granholm shared news of $900 million in grant funding from the U.S. Department of Energy for the deployment of small modular reactors (SMRs) at an event at Amazon’s second headquarters. This move marks a shift towards clean power sources such as nuclear energy that do not produce carbon emissions and can operate 24/7 unlike wind and solar power which are intermittent. Data center giants like Amazon, Microsoft, and Google are racing to secure deals for new sources of clean power, including nuclear.
Amazon has entered into partnerships with Energy Northwest and X-energy to fund the construction of four SMRs in central Washington. Additionally, Amazon has a deal with Dominion Energy to explore the possibility of building SMRs in Virginia. Garman highlighted the potential of the reactors from X-energy, stating that they are a new technology that will enable the construction of smaller, self-contained power generation units near data centers in a safe and scalable manner. With predictions of a doubling in data center electricity demand in the next few years, the expansion of clean energy sources is crucial to meet the growing energy needs of these facilities.
U.S. Sen. Tim Kaine of Virginia spoke at the event and mentioned that Amazon is currently the top consumer of energy in the nation, surpassing Walmart in recent years. The Virginia area, known as a national data center hub, is experiencing a significant spike in electricity demand. Granholm emphasized the importance of data centers bringing their own power to achieve community buy-in and prevent utility rates from being raised for everyday citizens. She highlighted government funding and public policies that support the deployment of clean energy, such as the Inflation Reduction Act and its tax credits.
The U.S. government is working to facilitate the expansion of nuclear power through initiatives like the DOE’s grant funding for SMRs and the hosting of meetings to educate investors about backing this technology. U.S. Sen. Mark Warner of Virginia credited tech companies like Amazon, Google, and Microsoft, as well as other hyperscalers operating data centers, for kick-starting the nuclear power sector. Warner noted that nuclear advocates have been trying to build the first SMRs for years without success, and the recent announcements from companies like Amazon are a significant step forward in advancing nuclear power. The path to decarbonization is seen as private sector-led and government-enabled, with clean energy deployments playing a key role in reducing carbon emissions and transitioning to a more sustainable energy future.
The expansion of next-generation nuclear power in partnership with companies like Amazon is seen as a crucial step towards achieving cleaner energy sources and reducing carbon emissions. By investing in small modular reactors and bringing their own power, data centers can meet their increasing electricity demands while also contributing to a cleaner and more sustainable energy grid. The collaboration between government, industry, and investors is key to driving the growth of nuclear power and moving towards a more sustainable energy future. As tech giants and data center operators race to secure clean energy sources, nuclear power emerges as a promising solution to meet the growing energy needs of these facilities in an environmentally friendly manner.
