Amazon: Using Nuclear to Power AI and Reach Net Zero
Amazon is strategically positioning itself within the nuclear energy sector to support its ambitious sustainability goals, driven by the need to power its AI-driven data centre infrastructure.
With a substantial US$500m investment, Amazon is working to harness advanced nuclear technology as part of a broader initiative to utilise reliable, carbon-free power for digital and energy transitions.
Advancing small modular reactors (SMRs)
The tech giant has dedicated more than US$500m to the advancement of small modular reactors (SMRs).
These cutting-edge nuclear reactors are designed for greater adaptability and quicker deployment compared to their traditional counterparts.
This flexibility allows SMRs to be strategically located near data centres and urban locales, providing Amazon with consistent and low-carbon energy while enhancing local energy security.
SMRs offer a sustainable alternative to conventional energy sources by producing electricity with minimal greenhouse gases, thereby reducing reliance on fossil fuels like diesel and coal.
Their reduced capital requirements and expedited construction timelines further enhance their accessibility compared to conventional nuclear plants.
Utilising existing nuclear infrastructure
Amazon has partnered with Talen Energy to establish a data centre adjacent to the Susquehanna nuclear facility in Pennsylvania.
This collaboration includes a long-term agreement to purchase 1,920MW of carbon-free electricity through 2042, supporting both AWS data centres and AI infrastructure.
Additionally, they are exploring SMR development and expanding nuclear capacity within Talen's operations.
Part of a US$20bn investment plan in the state, this initiative is expected to generate 1,250 high-skilled jobs, contributing significant local economic benefits.
“Amazon is proud to help Pennsylvania advance AI innovation through investments in the Commonwealth’s economic and energy future,” says Kevin Miller, Vice President of Global Data Centers at AWS.
“That’s why we’re making the largest private sector investment in state history – US$20bn – to bring 1,250 high-skilled jobs and economic benefits to the state, while also collaborating with Talen Energy to help power our infrastructure with carbon-free energy.”
Supporting next-generation nuclear innovation
Through its Climate Pledge Fund, Amazon has spearheaded a US$500m investment in X-energy, a company focused on developing advanced SMRs and high-assay low-enriched uranium (HALEU) fuel.
This aligns with their strategy to accelerate sustainable technology deployment to achieve net-zero emissions by 2040.
The backing will aid X-energy's design and licensing efforts, with projections to provide over 5GW of new nuclear capacity by 2039.
Direct nuclear energy for data centres
Amazon's initiative to directly power its data centres using nuclear energy is in effect at the Susquehanna site, ensuring a steady, zero-emission power supply that is crucial for its AI and cloud service demands.
“At Amazon, our culture is rooted in innovation and speed,” says Kara Hurst, Amazon’s CSO.
“AI can enable both and we’re using it in ways big and small to make progress.
“This is just the beginning and I’m excited about all the ways AI can help us reach our goals.”
Facilitating new nuclear projects
Amazon is keen to encourage the deployment of SMRs, such as their plans in Washington to develop four reactors at the Columbia Generating Station with an initial capacity of 320MW in partnership with Energy Northwest.
In Virginia, they are evaluating a 300MW SMR project with Dominion Energy at the North Anna site, with plans for vendor selection by 2025.
Boosting job creation and economic growth
Amazon's nuclear-linked projects promise substantial economic impact, especially with the Washington SMR development expected to create up to 1,000 construction jobs and more than 100 permanent positions.
Similarly, the Pennsylvania data centre project will expand construction opportunities and rejuvenate local infrastructure.
“Our agreement with Amazon is designed to provide us with a long-term, steady source of revenue and greater balance sheet flexibility through contracted revenues,” says Mac McFarland, President and CEO at Talen.
“We remain a first mover in this space and intend to continue to execute on our data centre strategy. Talen is well-positioned to support Amazon’s energy needs as it invests further in the Commonwealth of Pennsylvania.”
Enhancing energy security and AI development
Amazon's nuclear initiatives are poised to reduce carbon emissions while bolstering the United States' leadership in global tech and energy sectors.
The plan to add more than 5GW of new nuclear energy will enhance energy independence, stabilise the grid and support the continuous operation of AI systems that demand significant power.
“We’re proud to be expanding our world-class data centre infrastructure, bringing more renewable energy projects online and supporting the country’s vision to be a global AI leader,” says Matt Garman, CEO of Amazon Web Services (AWS).
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