Amazon’s 40GW Clean Energy Bet to Power Future Data Centres

Amazon's cloud computing and AI operations demand extraordinary amounts of energy, and the company is responding with what could be the world's largest corporate technology-driven clean-energy strategy. With more than 40 GW of carbon-free capacity committed across more than 700 projects in 28 countries, the firm is effectively building a parallel energy infrastructure to support its expanding data centre portfolio.

For the fifth consecutive year, BloombergNEF has ranked Amazon among the world's leading corporate purchasers of carbon-free energy. This vast energy ecosystem comprises utility-scale solar and wind farms, offshore wind installations, on-site solar arrays, battery storage systems and an accelerating nuclear programme.

Kara Hurst, Amazon's Chief Sustainability Officer, says the company's investments extend beyond its own operational needs. "When companies like Amazon invest in new carbon-free energy projects, we're not just helping to power our own operations," she explains, "we're adding brand-new sources of carbon-free energy to the power grid that everyone uses – the same grid that powers homes, hospitals and schools."

Small modular reactors enter production

The most significant technological development in Amazon's energy strategy is its commitment to nuclear power, specifically small modular reactors (SMRs) that represent a fundamental reimagining of nuclear energy production. These SMRs produce nuclear energy at a smaller, more flexible scale than traditional nuclear plants.

In Washington state, Amazon has agreed with Energy Northwest to fund the development of four advanced SMRs with an initial capacity of 320 MW. The installation could eventually expand to 960 MW, enough to power more than 770,000 homes. The first units are expected online in the early 2030s.

Amazon has also invested $500m in X-Energy, a reactor developer, with a target of bringing more than 5 GW of new nuclear capacity online in the US by 2039.

Maria Korsnick, President and CEO of the Nuclear Energy Institute, believes nuclear energy could play an essential role in powering digital infrastructure. "Nuclear energy is the nation's largest source of clean electricity, providing reliable baseload power essential to meeting our energy goals," she says. "As electricity demand continues to grow due to AI and data centres, corporate investments in nuclear technologies like small modular reactors are critical to fuelling innovation whilst reducing emissions."

AI systems tackle intermittency challenge

While solar and wind comprise the largest part of Amazon's renewable portfolio, these power sources face a fundamental technical challenge: intermittency. The Sun does not always shine and the wind does not always blow, creating supply gaps particularly problematic for data centres requiring constant power.

Amazon is addressing this through technology-driven energy storage projects. The company has 11 utility-scale battery projects, with plans to procure many more in the coming years.

At the Baldy Mesa solar installation in California's Mojave Desert, Amazon is deploying AI-driven software that analyses up to 33 billion data points annually to determine when to store and release energy based on live grid conditions. This represents a new approach to grid management where machine learning algorithms optimise energy distribution in real time, potentially creating a model that other operators could replicate.

The integration of AI into energy management systems allows Amazon to predict demand patterns with greater accuracy than traditional forecasting methods. By analysing historical usage data, weather patterns and real-time operational metrics, the system can anticipate peak demand periods and adjust energy storage and distribution accordingly, reducing waste and improving grid stability.

Grid modernisation and efficiency metrics

Amazon positions its investments as beneficial not only to its operations but to regional grid infrastructure. In Mississippi, the company has partnered with utility provider Entergy to develop 650 MW of new renewable energy capacity. Amazon is also contributing to Entergy's $300m "Superpower Mississippi" grid reliability campaign, which aims to reduce outage frequency for residential customers by around 50%.

Ray Long, President and CEO of ACORE, a non-partisan clean energy organisation, believes deals like the Amazon-Entergy partnership are significant for national energy security. "Corporate renewable energy procurement has become one of the largest drivers of new carbon-free energy projects in the US," he says.

These partnerships demonstrate how corporate energy procurement can drive infrastructure improvements that benefit entire communities. By investing in grid modernisation alongside renewable capacity, Amazon is helping to create more resilient energy networks capable of handling increased demand whilst maintaining reliability for all users.

On operational efficiency, Amazon reports a global Power Usage Effectiveness score of 1.15 in 2024, a metric where 1.0 represents perfect efficiency with no energy wasted on cooling or ancillary systems. On water usage, Amazon reports a Water Usage Effectiveness figure of 0.15 litres per kilowatt-hour in 2024, representing a 17% improvement on its 2023 score.

"Amazon is committed to maximising energy efficiency across our global operations, including our data centre network, electric delivery fleets and hundreds of fulfilment centres," Kara says. Making good on these commitments will depend heavily on whether its investments in carbon-free energy pay off in time.