Amazon has announced major new investments and agreements to support the development of small modular nuclear reactors (SMRs) in the United States. SMRs promise to provide carbon-free electricity on a smaller scale than traditional large nuclear plants.
Amazon signed its first deal with Energy Northwest, a Washington state public utility consortium. The agreement will fund initial feasibility studies to potentially build four SMRs near an existing nuclear plant by the early 2030s. Amazon would get first access to purchase the 320 megawatts of electricity generated. It also secured options to expand the site to a potential 960 megawatts, enough for over 700,000 homes.
Under the agreement, Amazon will have the right to purchase electricity from the first project (four modules), which is expected to generate 320 megawatts (MW) of energy capacity. Energy Northwest has the option to further build out the site by adding up to eight additional modules (640 MWs) resulting in a total project generating capacity of up to 960 MWs.
Amazon made its second investment in SMR developer X-energy. The company led a $500 million funding round for X-energy, which is designing reactors that could be used in the Energy Northwest project. With Amazon"s support, X-energy plans to complete its reactor designs, get licensing, and build a fuel facility in Tennessee. It aims to partner with Amazon and utilities to deploy over 5,000 megawatts of SMRs nationwide by 2039.
Amazon"s third deal was with Dominion Energy in Virginia to explore an SMR near an existing plant. Dominion expects electricity demand in the state to double in 15 years, making SMRs an attractive option.
Nuclear power matches the massive electricity needs of Amazon and other tech giants struggling to reduce their carbon footprints from data center operations. SMRs could provide continuous carbon-free power without the intermittency of solar and wind. However, SMR projects still require regulatory approval, and economic challenges remain.
Amazon is not the only tech company that has expressed interest in using nuclear energy. Google has also secured a new contract for nuclear power, while Microsoft plans to restart the Three Mile Island plant by 2028.