Washington: Amazon Web Services (AWS) has announced a major investment exceeding $500 million in nuclear power investment, launching three projects aimed at meeting the increasing clean energy needs driven by its expanding services, including generative AI. The move is also part of Amazon’s broader strategy to achieve net-zero carbon emissions.
AWS has entered into a partnership with Dominion Energy, Virginia’s main utility provider, to explore the development of a small modular nuclear reactor (SMR) near Dominion's North Anna nuclear power plant. SMRs, an advanced nuclear technology, have a smaller footprint and faster construction times compared to traditional reactors, enabling quicker deployment and grid connection. They produce no carbon emissions, making them an attractive option for clean energy.
AWS is the latest tech giant to embrace nuclear power, following recent announcements by Google and Microsoft regarding their own nuclear power initiatives. AWS CEO Matthew Garman emphasised that the growing energy demand, particularly from data centres, cannot be met solely by wind and solar power, making nuclear a viable solution.
Virginia faces power surge as data centers expand
Virginia, home to nearly half of the U.S.’s data centres, including the high-density “Data Center Alley” in Loudoun County, is experiencing a surge in power demand. Dominion Energy, which supplies 3,500 megawatts to data centres across the state, projects an 85 percent increase in demand over the next 15 years. AWS's SMR projects in Virginia are expected to provide at least 300 megawatts of power.
Virginia Governor Glenn Youngkin hailed the investment as a major step toward positioning Virginia as a hub for nuclear innovation. AWS also plans to invest 35 billion dollars by 2040 in developing multiple data centre campuses in the state.
In addition to its Virginia project, AWS has partnered with Energy Northwest, a consortium of public utilities in Washington state, to fund and develop four SMRs. These reactors, developed using X-energy’s technology, will supply power to the grid and support Amazon’s operations in the region. Amazon will have the option to purchase electricity from these reactors and could benefit from further expansion as Energy Northwest considers building up to eight additional modules.
The initiative aligns with the U.S. government's push for clean energy, with Energy Secretary Jennifer Granholm announcing 900 million dollars in new funding to support SMR deployment as part of the Biden administration's clean energy strategy. Amazon’s Climate Pledge Fund is also a key investor in X-energy, leading a 500 million dollars financing round to support the development of advanced nuclear technologies. X-energy CEO J. Clay Sell said the partnership between AWS and X-energy will help scale clean, safe, and reliable nuclear energy to meet future demand.
This nuclear push marks a significant step for Amazon as it seeks to power its growing operations sustainably while supporting global clean energy initiatives.
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