Amazon goes nuclear, to invest over $500 million to build small modular reactors amid AI boom

Just yesterday, we reported on Google’s plans to tap nuclear power for its AI data centers. Now, Amazon is making its own move with a $500 million investment in small modular reactors (SMRs) to support its power-hungry data centers.

Amazon Web Services (AWS), the cloud arm of the company, announced on Wednesday it has signed a deal with Dominion Energy, a utility company in Virginia, to explore the development of an SMR near Dominion’s North Anna nuclear power station. These reactors produce zero carbon emissions, making them an appealing energy source.

As part of the deal, AWS is committing over $500 million to nuclear projects spanning from Virginia to Washington state. As the demand for AI continues to grow, AWS is focused on securing clean energy sources to fuel its expanding generative AI services. This move also aligns with Amazon’s long-term goal of reaching net-zero carbon emissions.

This announcement follows Amazon’s acquisition of a nuclear-powered data center from Talen Energy earlier this year. In March, Talen sold its Pennsylvania-based 960-megawatt data center campus to AWS for $650 million.

Susquehanna nuclear plant in Salem Township, Penn., along with the data center in the foreground. (Photo: Talen Energy)

SMRs, unlike traditional nuclear reactors, are more compact and can be deployed closer to the energy grid. They also have quicker construction timelines, helping them come online faster.

Amazon and Google are just the latest tech giants to embrace nuclear power to meet the energy demands of their data centers. Earlier this week, Google announced a deal with SMR developer Kairos Power, while Constellation Energy is working to restart Three Mile Island to supply Microsoft’s data centers, CNBC reported.

“We see the need for gigawatts of power in the coming years, and there’s not going to be enough wind and solar projects to be able to meet the needs, and so nuclear is a great opportunity,” AWS CEO Matthew Garman said.

He also noted that SMRs represent a significant leap in technology, offering safer, smaller, and more easily manufactured nuclear solutions. “Also, the technology is really advancing to a place with SMRs where there’s going to be a new technology that’s going to be safe and that’s going to be easy to manufacture in a much smaller form.”

Virginia plays a major role in this energy shift, with nearly half of all U.S. data centers located there—especially in an area known as Data Center Alley. Around 70% of the world’s internet traffic flows through this region each day. Dominion Energy supplies power to 452 data centers in Virginia, most of them located in Data Center Alley, and expects demand to increase by 85% over the next 15 years. AWS’s new SMRs are expected to provide at least 300 megawatts of power to the region.

Nuclear power is quickly gaining momentum in the tech industry as it offers a consistent, low-emission energy source. With energy consumption in data centers projected to double by the end of the decade, companies are increasingly turning to nuclear solutions to meet their power needs while minimizing environmental impact.

John Moore, an editor at TechTarget, highlighted that AI data centers consume vast amounts of electricity, especially for cooling equipment. As more companies recognize the benefits of nuclear energy, Google’s recent announcement underscores a growing shift toward sustainable power in the tech sector.