Amazon Eyes Advanced Nuclear Reactors for Climate Goal Achievement

Two days following Google’s announcement of a “world’s first” agreement to purchase electricity from advanced nuclear reactors, Amazon revealed three new agreements focusing on similar technology. These agreements aim to support the development of small modular reactors (SMRs), which are significantly smaller than conventional nuclear power plants, ranging from one-tenth to one-quarter the size. Should these projects be completed, they could provide tech companies with a source of carbon emission-free energy, helping them meet their climate goals through nuclear power.

Amazon has entered into an agreement with Energy Northwest, a consortium of public utilities in Washington State, to enable the development of four SMRs by the early 2030s. Under this agreement, Amazon will fund the initial feasibility phase at a site near an existing nuclear energy facility in Richland, Washington. The company will have the option to purchase electricity from the first four SMRs, which are projected to have a combined capacity of 320 megawatts. This deal also includes the potential to expand the site with additional units, potentially generating up to 960 megawatts—enough electricity to power 770,000 homes. This additional electricity will be available for Amazon and other local businesses and residences.

Furthering its investment in nuclear technology, Amazon is also supporting X-energy, a startup developing an advanced reactor design intended for use in the Energy Northwest project. Energy Northwest plans to build, own, and operate these reactors, having explored the possibility of a nuclear facility utilizing X-energy’s Xe-100 reactor design since 2020.

X-energy announced a $500 million Series C-1 financing round today, with Amazon as a significant contributor. Beyond the Washington project, this funding will aid in completing X-energy’s reactor design and licensing, as well as developing a fuel fabrication facility in Oak Ridge, Tennessee. The goal is to bring over 5,000 megawatts of new SMR projects online in the United States by 2039. To achieve this, Amazon and X-energy plan to create a standardized deployment and financing model in collaboration with infrastructure and utility partners.

In Virginia, Amazon has entered into a deal with Dominion Energy to explore an SMR project near its North Anna nuclear power station. This project could generate 300 megawatts of power, addressing the growing electricity demand anticipated to double in the state over the next 15 years.

Nuclear energy is gaining traction among tech companies like Amazon, Google, and Microsoft as a viable solution for reducing carbon emissions amidst increasing energy requirements. Data centers, crucial for training AI systems and other functions, consume large amounts of electricity, leading to higher greenhouse gas emissions unless offset by carbon-free energy sources.

Unlike solar and wind energy, nuclear reactors consistently generate electricity, making them suitable for the continuous operations of data centers. SMRs, in particular, offer potentially faster construction and easier site placement than traditional nuclear plants.

Despite the potential benefits, SMR projects still require regulatory approval and could encounter economic obstacles. The US Nuclear Regulatory Commission certified a design for a small modular reactor for the first time in January 2023, but NuScale Power’s plans for a demonstration plant were shelved later that year due to rising costs.

Additionally, tech companies also show interest in traditional nuclear plants. For instance, Amazon Web Services acquired a data center campus in Pennsylvania powered by a nuclear facility, and Microsoft made arrangements to utilize power from the previously shuttered Three Mile Island plant.

However, the push toward nuclear energy faces opposition from those concerned about the associated environmental and health risks, such as uranium mining and radioactive waste disposal. Johanna Neumann, a senior director at the Environment America Research & Policy Center, emphasized the need for tech companies to focus on energy efficiency and renewable sources in response to Google’s SMR announcement.

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