Amazon is making a substantial $500 million investment in small modular nuclear reactors in Virginia and Washington state, marking its entry into the clean energy sector to power its growing data centre operations.
Amazon has announced a significant $500 million investment to establish projects in Virginia and Washington state aimed at powering its data centres with small modular nuclear reactors (SMRs). The initiative, part of a broader move towards clean energy solutions, involves a partnership with Dominion Energy in Virginia to install these reactors near the company’s North Anna nuclear station. The reactors will be developed using technology from X-energy, a firm based in Maryland.
This announcement follows closely on the heels of a recruitment drive by Amazon, which advertised a position for a nuclear engineer to support this specific technology. The efforts mark Amazon’s entry into a growing list of companies turning to SMRs to meet the substantial energy demands of their computing and data operations. This list includes industry giants like Microsoft, which has entered a long-term, 20-year agreement with Constellation Energy to activate a reactor at the Three Mile Island site in Pennsylvania, and Equinix, a data company that signed a 500-megawatt deal with Oklo earlier this year.
Similarly, Oracle has plans to construct a 1-gigawatt data centre campus powered by three SMRs, and Google has set a target of 2030 for the operational launch of its SMR-powered data centre.
In addition to its Virginia project, Amazon has also struck a deal with Energy Northwest in Washington state. Energy Northwest will not only own and operate the new nuclear reactors but will also incorporate the produced energy into its grid, thereby powering Amazon’s local operations. The agreement includes a provision allowing Energy Northwest to install more than a dozen nuclear modules, with Amazon retaining the priority option to purchase power from the first four.
X-energy CEO J. Clay Sell emphasized the substantial potential of such partnerships in leading the future of nuclear energy within the commercial sector. He stated, “To fully realize the opportunities available through artificial intelligence, we must bring clean, safe, and reliable electrons onto the grid with proven technologies that can scale and grow with demand.”
This strategic investment aligns with Amazon’s broader commitment to Virginia, where by 2040, the company intends to invest $35 billion to develop data centres throughout the state. Virginia currently hosts approximately 50% of all U.S. data centres, particularly in Loudoun County’s “Data Center Alley.”
Virginia Governor Glenn Youngkin highlighted the importance of this development in maintaining Virginia’s leadership in nuclear innovation. He stated, “Amazon Web Services’ commitment to this technology and their partnership with Dominion is a significant step forward to meet the future power needs of a growing Virginia.”
Amazon is orchestrating a significant expansion of its data centre infrastructure and local power networks, having spent $650 million earlier this year to purchase Talen Energy’s site adjacent to the Susquehanna Steam Electric Station in Pennsylvania. This ambitious move is set to facilitate the establishment of 15 data centres on a sprawling 1,600-acre site.
The company’s investments form a crucial component of Amazon’s overall strategy to harness advanced technologies and sustainable energy to support its extensive and growing operations.
Source: Noah Wire Services
