- Amazon has signed three agreements to explore the use of small modular reactors (SMRs) to meet the growing energy demands of its data centers.
- SMRs are seen as a potential clean energy solution, with Amazon aiming to bring 5 gigawatts of nuclear power online by 2039, making it the largest commercial deployment target for this technology in the U.S.
What happened
Amazon is stepping up its efforts to secure new sources of clean energy to meet the increasing power requirements of its data centers by signing three major agreements to explore the use of small modular reactors (SMRs). In a bold move, the tech giant is now working with X-Energy to fund a feasibility study for the deployment of SMRs near a Northwest Energy site in Washington state. The SMRs, designed to reduce construction costs by assembling components in factories rather than on-site, could produce up to 960 MW of electricity—enough to power over 770,000 homes. In addition to Amazon’s commitment, Energy Northwest, a consortium of state public utilities, has the option to expand the project with eight more modules.
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Amazon’s growing focus on energy solutions isn’t new. With data center energy needs skyrocketing, Amazon is also backing X-Energy’s development of SMRs through a $500 million funding round, aiming to bring 5 gigawatts of power online in the U.S. by 2039. Additionally, the company has struck agreements with Dominion Energy to explore an SMR project in Virginia, where energy demand is expected to surge by 85% in 15 years.
Why it’s important
Amazon’s push into nuclear energy marks a significant development for the tech industry, which is grappling with the soaring power needs driven by advancements in artificial intelligence and cloud computing. With data centers already guzzling enormous amounts of energy, and power use expected to triple by 2030, the tech sector is under pressure to find reliable, clean energy sources that can scale alongside demand. Nuclear power, with its low carbon footprint and high energy output, is emerging as a potential solution, especially as traditional energy sources like natural gas and renewables struggle to meet the increased load.
For smaller players in the tech ecosystem, Amazon’s investment in SMRs could signal a shift toward widespread adoption of nuclear technology. While SMRs are still in development, the promise of modular, scalable nuclear reactors has the potential to democratize access to nuclear energy, offering a cleaner, more efficient alternative to fossil fuels. If successful, Amazon’s efforts could lead to more sustainable data center operations, driving industry-wide transformation and potentially making nuclear power a core part of the future energy landscape. However, the concerns over long-term radioactive waste management and the slow progress in licensing and building SMRs in the U.S. remain significant hurdles.
