Amazon is stepping into the nuclear energy arena, aligning itself with other tech giants like Microsoft and Google, who have already made commitments to invest in nuclear power for their data centers. This bold move comes as part of Amazon's broader strategy to enhance its energy portfolio and reduce its carbon footprint.
The tech behemoth recently announced three significant agreements, including a partnership with the innovative startup X-Energy. These deals aim to generate approximately 300 megawatts of capacity in two key regions: the Pacific Northwest and Virginia, both of which are burgeoning data center hubs.
Central to these agreements is the construction of small modular reactors (SMRs). Unlike traditional nuclear plants, SMRs produce less power but are touted to be quicker and more cost-effective to build. Amazon anticipates these reactors will start providing electricity by the early 2030s.
In the Pacific Northwest, Amazon's collaboration with the Energy Northwest consortium will facilitate the construction of four SMRs, collectively generating around 320 megawatts. Future expansions could see this capacity grow to a staggering 960 megawatts, potentially powering about one million homes. Meanwhile, in Virginia, Amazon and Dominion Energy are exploring the development of an additional 300 megawatts of SMRs near North Anna, located strategically between Washington, D.C., and Richmond.
The technology behind these projects will likely come from X-Energy, which specializes in high-temperature gas-cooled reactors. Recently, Amazon's Climate Pledge Fund led a substantial $500 million Series C-1 funding round for X-Energy, with backing from notable investors such as Citadel founder Ken Griffin and the University of Michigan. This latest investment builds on X-Energy's previous fundraising efforts, totaling $385 million to date.
X-Energy’s innovative Xe-100 reactor will generate 80 megawatts of electricity, employing a unique fuel system known as TRISO. This design enhances safety by encasing uranium fuel in multiple layers of carbon, ensuring stability even at high temperatures. With helium circulating through the reactor, temperatures can reach 750 degrees Celsius, allowing for efficient steam generation to drive turbines.
The first Xe-100 reactor is set to be constructed at a Dow chemical facility near Corpus Christi, Texas, although a completion date has yet to be announced. X-Energy aims to develop up to 5,000 megawatts of new nuclear power across the U.S. by 2039.
These latest agreements mark a significant momentum shift for nuclear energy, especially amidst rising interest in nuclear fusion and the growing prominence of renewable sources like solar and wind. While nuclear power is well-established, the commercial viability of new reactor designs remains to be seen. As the competition for carbon-free energy sources intensifies, Amazon's venture into nuclear power could play a pivotal role in shaping the future of energy sustainability.
With Amazon's backing, the nuclear sector may gain a renewed sense of purpose and innovation, positioning it as a competitive player in the race for cleaner energy. As advancements continue, the potential for nuclear power to contribute meaningfully to decarbonizing the electrical grid is a narrative to watch closely.
