Amazon Web Services (AWS) is set to invest over $500 million in nuclear power through three projects spanning from Virginia to Washington state. AWS, a subsidiary of Amazon known for its cloud computing services, faces a growing need for clean energy as it expands its capabilities into generative AI. This move aligns with Amazon’s commitment to achieving net-zero carbon emissions.
AWS has signed an agreement with Dominion Energy, a Virginia-based utility company, to explore the development of a small modular nuclear reactor (SMR) near Dominion’s existing North Anna nuclear power station. These nuclear reactors have the advantage of producing no carbon emissions.
SMRs are a modern type of nuclear reactor distinguished by their smaller footprint, which allows them to be built closer to the electrical grid. They also benefit from faster construction times compared to traditional reactors, enabling them to become operational more quickly.
Recently, other major tech companies have also turned to nuclear power to meet the increasing energy demands of data centers. For instance, Google announced an agreement with SMR developer Kairos Power for future energy needs. Similarly, Constellation Energy plans to reactivate Three Mile Island to provide power for Microsoft’s data centers.
AWS CEO, Matthew Garman, commented on the anticipated power requirements, noting that gigawatts of energy will be needed in upcoming years. He emphasized that nuclear energy presents a valuable opportunity, particularly with advancements in SMR technology that enable new, safer, and more easily manufacturable technologies.
Virginia hosts nearly half of all U.S. data centers, with Loudoun County in northern Virginia—coined “Data Center Alley”—hosting the majority. Dominion currently supplies approximately 3,500 megawatts across 452 data centers within its Virginia service area, with about 70% concentrated in Data Center Alley. A typical data center requires around 30 megawatts, although Dominion reports receiving individual requests for capacities ranging from 60 to 90 megawatts or more. The utility company projects an 85% increase in power demand over the next 15 years, and AWS expects the new SMRs to provide at least 300 megawatts to the Virginia region.
Virginia Governor Glenn Youngkin stated that SMRs would significantly contribute to transforming the state into a leading nuclear innovation hub, highlighting Amazon Web Services’ commitment to this technology as a key step toward addressing Virginia’s future energy needs.
AWS plans to invest $35 billion by 2040 to develop multiple data center campuses across Virginia, a plan announced by Governor Youngkin the previous year. Garman highlighted that these SMRs will supply the grid directly, thus benefiting not only data centers but all grid-connected systems.
AWS also reached an agreement with Energy Northwest, a consortium of state public utilities, to fund the development, licensing, and construction of four SMRs in Washington state. These reactors, built, owned, and operated by Energy Northwest, will supply energy directly to the grid, supporting Amazon operations as well. Under this agreement, Amazon has the option to purchase electricity from the first four modules, with Energy Northwest having the ability to construct up to eight additional modules. The resulting energy would be available to both Amazon and Northwest utilities, powering homes and businesses.
The SMRs will employ technology from Maryland-based X-energy, an SMR and fuel developer. AWS’s Climate Pledge Fund is the lead investor in a $500 million financing round for X-Energy, further supported by investors like Citadel founder Ken Griffin and affiliates of Ares Management Corp., NGP, and the University of Michigan.
X-energy CEO J. Clay Sell remarked on the partnership with Amazon, stating that their collaboration is set to shape the future of advanced nuclear energy in the commercial sector while supporting the burgeoning opportunities presented by artificial intelligence.
The Biden administration has allocated billions toward clean energy initiatives, and in conjunction with AWS’s announcement, U.S. Energy Secretary Jennifer Granholm revealed the availability of $900 million in new funding for SMR deployments.
Granholm stressed the importance of establishing data centers in the U.S. for various reasons, including national security, and the need for clean energy to support this development.
Earlier in the year, AWS ventured into nuclear energy by partnering with Talen Energy to acquire nuclear power from its Susquehanna Steam Electric Station in Pennsylvania. AWS also purchased the nearby nuclear-powered data center campus from Talen for $650 million.
