Like its Big Tech competitors, Amazon is betting on nuclear power to meet A.I.’s energy demands. The company today (Oct. 16) announced a slew of nuclear energy initiatives that will see Amazon invest in numerous small modular reactors (SMRs), a next-generation nuclear plant design that is much smaller than traditional reactors and therefore easier to scale.
The deals could cumulatively provide more than 5,000 megawatts of power by the end of the next decade—an enticing proposition for companies like Amazon, which are in dire need of clean energy as they race to develop data centers used to power A.I. models. These facilities will account for 44 percent of new electricity demand growth in the U.S. by 2028, according to a recent report from Bain & Company that noted the global energy consumption of data centers could more than double in the next three years.
While the A.I. revolution has spurred the likes of Amazon, Google and Microsoft to pour billions into data centers around the world, Big Tech companies also remain committed to carbon negative timelines. Amazon, for example, has promised to achieve net zero by 2040. Google and Microsoft made similar pledges for 2030. Nuclear energy has emerged as a promising way for tech companies to pursue their A.I. goals without skyrocketing emissions, with Google signing a similar SMR deal earlier this week and Microsoft agreeing to acquire power from a defunct nuclear plant that is looking to reopen.
Even more deals are expected to come to fruition in the future. OpenAI is reportedly in talks to buy electricity from Helion, a nuclear energy startup backed by the A.I. company’s CEO Sam Altman. And Yann LeCun, Meta’s A.I. chief, earlier this week outlined the need for nuclear energy in a post on X. “A.I. data centers will be built next to energy production sites that can produce gigawatt scale, low-cost, low-emission electricity continuously,” he said. “Basically, next to nuclear power plants.”
Here’s a look at some of the biggest nuclear energy deals struck by Big Tech companies thus far:
Amazon bets on next-generation nuclear plants
Amazon’s new agreements will see Amazon Web Services (AWS), the company’s cloud computing subsidiary, invest in the development of four SMRs from Energy Northwest, a Washington-based regional utility. Amazon would have the right to purchase energy from the reactors, which are expected to generate 320 megawatts of capacity initially and potentially expand to 960 megawatts in total—enough energy to power more than 770,000 homes in the U.S.
Through its Climate Pledge Fund, Amazon is additionally investing in X-Energy, an SMR developer whose design will be used in the Energy Northwest project. And in Virginia, AWS also signed an agreement to support utility company Dominion Energy as it explores developing an SMR near its existing North Anna nuclear power station. The initiative could bring at least 300 megawatts of power to the region, according to Amazon. “Nuclear is a safe source of carbon-free energy that can help power our operations and meet the growing demands of our customers,” said Matt Garman, CEO of AWS, in a statement.
This isn’t Amazon’s first foray into nuclear power. Last year, AWS struck a $650 million deal with Talen Energy to acquire a nuclear-powered data center in Salem Township, Penn., and purchase energy from the company’s existing nuclear station.
Google to purchase power from Kairos Energy
On Oct. 14, the Alphabet-owned company revealed its purchase power agreement with the SMR developer Kairos Power. The agreement will see Google acquire nuclear energy from “multiple” reactors, according to the company, which said the SMRs are expected to go live by 2030 with more to come by 2035.
In total, the deal should bring some 500 megawatts of power to the grid. “We believe that nuclear energy has a critical role to play in supporting our clean growth and helping to deliver on the progress of A.I.,” said Michael Terrell, Google’s senior director for energy and climate, on a call with reporters.
Like in the case of Amazon, Google’s SMR ambitions will be subject to regulatory approval. Only three SMRs are currently operational in the world, with zero located in the U.S.
Microsoft wants to reopen Three Mile Island
Microsoft decided to go down a more traditional route. In August, the company signed an agreement to acquire power from one of the units at Three Mile Island in Middletown, Penn., which was the site of an infamous partial reactor meltdown in 1979.
Microsoft’s agreement with Constellation Energy, owner of the plant, would see the unit not involved in the incident reopen. Shuttered since 2019, the unit’s revival would take place in 2028 and provide Microsoft with 835 megawatts.
Last year, Microsoft also signed a power purchase agreement with the Altman-backed Helion. (Microsoft is the largest investor in OpenAI.) The initiative is attempting to build a power plant commercializing nuclear fusion, which is the same process that powers the sun and stars and isn’t expected to be achieved on Earth for years or even decades. Under the agreement, Helion will provide at least 50 megawatts to the tech company after its first year of operation.