Amazon Web Services is putting down half a billion dollars to explore nuclear power for its ever-growing energy needs. AWS is now partnering with Dominion Energy in Virginia to develop small modular reactors (SMRs), hoping to meet the growing demand for clean power as its cloud computing and AI services continue to expand. The company’s push towards nuclear energy is driven by its goal to cut carbon emissions and secure enough power for the future.
With its focus on clean, reliable electricity, Amazon is joining other tech giants like Microsoft and Google, who have also looked into nuclear power for their data centers. Google has just announced a similar deal with Kairos Power to build seven 500 megawatts small modular reactors (SMRs) for its energy needs.
In Virginia, home to nearly half of all U.S. data centers, Dominion Energy’s service area covers 3,500 megawatts across 452 facilities, with the bulk located in what’s called Data Center Alley. AWS expects to tap into this expanding power grid as part of its agreement with Dominion.
Why Nuclear for Amazon?
Data centers eat up a lot of power—sometimes as much as 30 megawatts per site—and the current renewable energy sources like wind and solar just won’t cut it to meet growing demand. That’s where SMRs come in. These reactors take up less space than traditional nuclear plants, can be built faster, and produce no carbon emissions, which makes them appealing to companies like Amazon looking to reduce their environmental footprint.
SMRs aren’t just faster to build, they’re also smaller, making them easier to fit into existing infrastructure. They can be located closer to the areas where the power is actually needed, which helps keep energy loss down when it’s transported across long distances. AWS expects to get at least 300 megawatts from SMRs in Virginia alone.
From Virginia to Washington: Expanding Nuclear Horizons
Amazon is spreading its nuclear investments further, too. In Washington state, AWS has inked a deal with Energy Northwest, a public utilities group, to fund the construction of four new SMRs. These reactors will help feed electricity directly into the power grid, benefiting both Amazon and local residents. Energy Northwest has the option to add up to eight more reactors in the future, which would also be available for Amazon’s use.
These Washington-based reactors will be built using technology developed by X-energy, a company specializing in SMRs. AWS is putting a lot of faith in X-energy, even leading a $500 million funding round for the company through its Climate Pledge Fund, which focuses on investments in clean energy. X-energy’s technology promises to be a scalable solution for companies looking to meet their growing power needs without the massive carbon output of traditional energy sources.
Clean Power Meets Big Data
The reason for Amazon’s sudden nuclear push? Its growing AI and data center services are driving up its energy needs to levels that renewable energy alone can’t meet. AWS CEO Matthew Garman said, “We’re going to need gigawatts of power in the coming years, and wind and solar just aren’t going to be enough.”
The federal government is also backing these efforts. U.S. Energy Secretary Jennifer Granholm announced $900 million in new funding for those interested in deploying more SMRs across the country, a move aimed at reducing emissions while bolstering energy security.
Virginia has already become a hotspot for nuclear development. AWS’s partnership with Dominion Energy could turn the state into a leader in the field, especially with Governor Glenn Youngkin and local officials supporting these initiatives as a way to meet the region’s rising power demands.
Nuclear Energy: A Long-Term Investment
Nuclear isn’t new for AWS. Earlier this year, Amazon signed a deal with Talen Energy to purchase power from the Susquehanna nuclear plant in Pennsylvania. It also bought a nearby data center powered by nuclear energy for $650 million. These moves are part of Amazon’s broader strategy to ensure it has enough clean power to reach its goal of net-zero carbon emissions by 2040.
As AWS scales up its investments in nuclear power, other companies are likely to follow suit. The energy needs of the tech industry are only getting bigger, and traditional energy sources won’t be able to keep up. With SMRs, Amazon is positioning itself to stay ahead of the curve, while also helping the U.S. meet its clean energy goals.