Amazon announced on Wednesday that the company has signed three agreements to support the development of nuclear energy projects, including the development of Small Modular Reactor (SMR) nuclear technology.
In Washington state, Amazon reached an agreement with Northwest Energy to develop four advanced SMRs, with a planned generating capacity of around 320 megawatts (MW) in the first phase. These reactors will be built, owned, and operated by Northwest Energy, with Amazon having the option to purchase power from these SMRs.
Northwest Energy has the potential to add up to eight more SMRs, increasing the total generating capacity to 960 MW, which could power 770,000 American homes. Starting in the early 2030s, these projects will help meet the expected energy demand in the Pacific Northwest region.
In Virginia, Amazon signed an agreement with Dominion Energy to explore the development of SMR projects near Dominion’s existing North Anna nuclear power station. This could bring at least 300 MW of power to the Virginia region, as Dominion anticipates an 85% increase in power demand in the area over the next 15 years.
Amazon also made an investment in X-energy, a leading developer of next-generation SMR reactors and fuel. X-energy’s advanced nuclear reactor design will be utilized in Northwest Energy’s projects.
Currently, Amazon is providing $500 million in financing for X-energy, with Citadel’s founder and CEO, Ken Griffin, also participating in the financing agreement.
Matt Garman, CEO of Amazon Web Services (AWS), stated, “Our agreements will encourage the construction of new nuclear technologies to provide energy for the decades ahead.”
SMR components are manufactured in factories to reduce construction costs, unlike the larger reactors used today which are built on-site.
Nuclear power generation is almost greenhouse gas emission-free and provides high-paying jobs, garnering support from both the Democratic and Republican parties.
The Biden administration has allocated billions of dollars towards clean energy production. As part of Amazon’s announcement, U.S. Energy Secretary Jennifer Granholm stated that $900 million in new funding is now available for companies looking to deploy more SMRs.
Amazon is the latest large tech company seeking new power sources to meet the surging electricity demands of data centers. A few days ago, Google announced an agreement with Kairos Power to develop SMRs; Microsoft also signed a power agreement with Constellation Energy to help restart one unit at the Three Mile Island nuclear power station in Pennsylvania, the site of the United States’ most serious nuclear accident in 1979.
(This article is partly based on reports from Reuters and CNBC.)