Amazon signs deals to build, invest in small modular nuclear reactors

Amazon announced a series of deals Wednesday aimed at building out small modular nuclear reactors, becoming the latest major technology company to invest in nuclear energy as Big Tech contends with the extensive energy needs of artificial intelligence (AI). 

As part of an agreement with Energy Northwest, a consortium of public utilities in Washington state, the e-commerce and cloud computing giant will support the construction of four small modular reactors.  

The reactors are expected to initially produce about 320 megawatts of power, with the ability to build additional modules and increase the total capacity to 960 megawatts. Amazon will have the right to purchase electricity from the first four reactors. 

“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,” said Matt Garman, CEO of Amazon Web Services (AWS), in a statement. 

Amazon is also investing in X-energy, an advanced nuclear reactor and fuel company whose designs will be used in the reactors constructed by Energy Northwest. It anchored a roughly $500 million fundraising round for X-energy. 

The company also signed an agreement with Dominion Energy to explore the development of small modular reactors near the company’s existing nuclear power station in Virginia. 

Amazon’s announcement comes just two days after Google announced a similar deal with Kairos Power to build a fleet of small modular reactors to power the tech giant’s data centers.  

The deals come as major tech firms look for new ways to power the AI boom. The technology requires vast amounts of energy, which in some cases has driven up the firms’ emissions.  

This poses a problem for many tech companies, which have vowed to become carbon-neutral or negative in the near future. 

“One of the fastest ways to address climate change is by transitioning our society to carbon-free energy sources, and nuclear energy is both carbon-free and able to scale – which is why it’s an important area of investment for Amazon,” Garman said. 

“Our agreements will encourage the construction of new nuclear technologies that will generate energy for decades to come,” he added.