Tech giant Amazon has unveiled plans to support the construction of a cutting-edge nuclear power facility in Washington state, marking a significant move in the tech industry’s growing interest in nuclear energy. The company has entered into an agreement with Energy Northwest to fund the initial feasibility phase of a nuclear plant in central Washington, securing the option to purchase electricity from the 320-megawatt facility.
In a related development, Amazon is leading a substantial investment round of approximately $500 million in X-energy, the company providing the nuclear reactor technology. This investment aims to bolster X-energy’s manufacturing capabilities, with the ambitious goal of constructing over 5 gigawatts of nuclear power in the United States by 2039.
Matt Garman, CEO of Amazon Web Services (AWS), emphasized the importance of nuclear energy in meeting the company’s sustainability goals. “Nuclear is a safe source of carbon-free energy that can help power our operations and meet the growing demands of our customers, while helping us progress toward our Climate Pledge commitment to be net-zero carbon across our operations by 2040,” Garman stated.
This announcement comes as major tech companies, including Microsoft and Google, are increasingly turning to nuclear power to fuel their expanding data center operations. The surge in computational demands, particularly driven by artificial intelligence, has intensified the need for reliable, round-the-clock power sources.
Amazon’s latest move represents a shift towards new nuclear
technologies, specifically small modular reactors (SMRs). These reactors are expected to offer quicker and more cost-effective construction compared to traditional nuclear facilities. In addition to the Washington project, Amazon has also partnered with Dominion Energy to explore the possibility of building SMRs in Virginia, a key data center hub where electricity demand is projected to increase by 85% over the next 15 years.
The tech sector’s growing interest in nuclear power comes at a crucial time for the industry, which has faced setbacks in recent years. X-energy itself had previously abandoned a $2 billion plan to go public and announced layoffs just a year ago. Other companies in the sector, such as NuScale Power and Oklo, have also encountered challenges with their nuclear projects.
However, the backing from tech giants like Amazon is expected to reinvigorate the nuclear sector, potentially making future projects more feasible and affordable. The Washington project, for instance, begins with four 80-megawatt reactors designated for Amazon but could expand to include an additional eight reactor modules at the same location, benefiting both Amazon and local utilities.
Energy Northwest, a consortium of public utilities in Washington, has been collaborating with X-energy since 2020 on the Xe-100 reactor project. Greg Cullen, Energy Northwest’s vice president for energy services and development, praised Amazon’s initiative, stating, “We applaud Amazon for being willing to use their financial strength, need for power and know-how to lead the way to a reliable, carbon-free power future for the region.”
The move towards nuclear power by tech companies comes as clean energy sources struggle to keep pace with the rapid growth of data centers in the U.S. This has resulted in some regions relying on coal power and an expected increase in natural gas usage to meet the growing demand from data centers.
Rick Dunn, general manager of Washington’s Benton Public Utility District, expressed optimism about Amazon’s investment in SMRs, viewing it as a positive development for the future of the Northwest power grid. As tech giants continue to seek reliable and sustainable energy sources, nuclear power appears to be gaining momentum as a key component of their long-term energy strategies.