Amazon goes nuclear, invests more than 500 million $ in small nuclear power plants

Amazon Web Services (AWS) is making a major investment in nuclear energy, committing over $500 million to power its expanding cloud computing needs, particularly as it ventures further into generative AI. The investment aligns with Amazon’s broader goal of achieving net-zero carbon emissions, and AWS has announced three nuclear projects spanning from Virginia to Washington state.

As part of this initiative, AWS has entered into an agreement with Dominion Energy, the utility provider in Virginia, to explore the development of a small modular nuclear reactor (SMR). The SMR is planned to be built near Dominion’s North Anna nuclear power station. Unlike traditional reactors, SMRs are designed to have a smaller footprint, which allows them to be situated closer to the energy grid. SMRs also offer faster construction times, allowing them to become operational more quickly, making them an appealing option for companies needing immediate clean energy.

Nuclear energy is a key component in AWS’s strategy to power its growing data centers, especially as renewable energy sources like wind and solar are not expected to meet future demand on their own. Nuclear reactors, which emit no carbon emissions, are viewed as a critical solution to supply the gigawatts of power AWS expects to need in the coming years. Matthew Garman, CEO of AWS, noted that SMR technology is advancing rapidly, providing a safer and more efficient way to generate power in a smaller, more adaptable form.

AWS is not alone in turning to nuclear energy for its data centers. Google recently announced its own plans to source power from SMR developer Kairos Power, and Microsoft is partnering with Constellation Energy to restart the Three Mile Island nuclear facility for its data center operations. These moves reflect a broader trend among tech giants to secure clean and reliable energy sources to power their growing digital infrastructure.

Virginia, home to nearly half of all the data centers in the U.S., plays a crucial role in the tech industry’s energy demands. Northern Virginia, particularly Loudoun County’s “Data Center Alley,” processes an estimated 70% of the world’s internet traffic each day. Dominion Energy currently supplies around 3,500 megawatts to 452 data centers across the state, with a significant portion of that energy going to Data Center Alley. Given that a single data center can require 30 megawatts or more, Dominion is receiving increasingly large power requests, with some reaching up to 90 megawatts or more.

Dominion Energy’s president and CEO, Bob Blue, recently projected that data center power demand will grow by 85% over the next 15 years. AWS’s new SMR projects are expected to bring at least 300 megawatts of clean nuclear power to Virginia, helping meet the state’s growing energy needs and supporting AWS’s efforts to power its cloud computing services sustainably.