- Amazon invests $500 million to develop small modular reactors (SMRs) with Energy Northwest and Dominion Energy to enhance its low-carbon energy supply and lower its data centre carbon footprint.
- The partnership plans to build four 80 MW reactors in Washington and explore a 300 MW reactor at the North Anna nuclear plant in Virginia. It aims to select a vendor by early 2025.
- This initiative aligns with a broader trend among tech companies to diversify their energy sources despite challenges in regulation, financing, and technological risks.
Amazon has announced a $500 million investment to develop small modular reactors (SMRs) in collaboration with Energy Northwest and Dominion Energy. This initiative aims to strengthen its low-carbon energy supply and reduce the carbon footprint of its data centres.
The agreements involve building four advanced reactors in Washington state, each with an 80 megawatt (MW) capacity. Energy Northwest will partner with X-energy Reactor Co., a leader in innovative nuclear technologies. Amazon plans to acquire up to 320 MW of power from these new facilities.
In addition, Amazon is conducting a funding round to support X-energy’s growth. This funding will enhance production capacity for equipment needed to construct SMRs. The investment could facilitate over 5 gigawatts (GW) of new energy projects based on X-energy’s technology. Other investors in this round include Ares Management Corp. and hedge fund founder Ken Griffin.
Simultaneously, Dominion Energy has signed a memorandum of understanding with Amazon to explore developing an SMR with a capacity of up to 300 MW at the North Anna nuclear plant in Virginia. The partnership aims to select a preferred vendor by the first quarter 2025.
These initiatives represent a significant advance in adopting SMRs, which offer a clean alternative to traditional energy sources. SMRs allow quicker deployment and better integration into the existing energy grid than conventional nuclear reactors.
Ed Bain, president of Dominion Energy Virginia, emphasises the importance of this collaboration in meeting rising energy demands tied to expanding data centres. “This initiative is a key step towards a more sustainable and resilient energy future,” he states during Amazon’s announcement.
Energy Northwest plans to submit a construction permit application for the new reactors at the beginning of 2025 and apply for a loan guarantee from the US Department of Energy. These steps will be crucial for securing the financing and approvals necessary for project completion.
Amazon’s focus on modular nuclear reflects a growing trend among major tech companies to diversify energy sources. Firms like Google also pursue similar initiatives; Google recently signed an agreement to deploy 500 MW of advanced nuclear projects by 2030.
However, the development of SMRs presents challenges. Key issues include regulation, financing, and managing technological risks. As a leading investor, Amazon will bear a significant portion of the initial risks. This support will help launch projects and attract additional investors.
The success of these initiatives could encourage the broader adoption of SMRs. This shift could be vital in the global energy transition and aid efforts to reduce greenhouse gas emissions. Moreover, this effort positions Amazon as a critical player in the clean energy sector, enhancing its reputation as a leader in sustainability and innovation.
Amazon’s substantial investment in SMRs reflects its commitment to sustainable energy solutions. By collaborating with established partners like Energy Northwest and Dominion Energy, Amazon takes significant steps toward securing a cleaner energy future. As the energy demand continues to rise, especially from data centres, this initiative could prove pivotal in meeting those needs while reducing environmental impact.