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What's Happening
- Amazon signed an agreement with X-energy and American Electric Power to build a nuclear energy facility in Indiana.
- The companies plan to deploy 12 small modular reactors at a former coal plant site to generate 960 megawatts of electricity.
- The installation will supply power to the regional grid and Amazon's data center operations.
Why It Matters
Tech companies need massive amounts of electricity to run artificial intelligence infrastructure. By acting as an anchor customer, Amazon provides the capital necessary to commercialize experimental small modular reactor technology.
The Context
- The United States has not yet operated a commercial small modular reactor to supply electricity.
- Amazon led a $700 million funding round for X-energy in 2024 to support reactor development.
- The partners intend to deploy more than five gigawatts of new nuclear capacity across the country by 2039.
What They're Saying
- An Amazon spokesperson said emerging technologies require early customers to "help de-risk projects and provide funding so they can be built and scaled to commercial availability."
What to Watch
- The timeline for construction remains unannounced while the Xe-100 reactors undergo licensing and regulatory approvals.
The Bottom Line
Amazon is funding experimental nuclear technology to secure carbon-free power for its expanding data center footprint.