Amazon to invest $500M in nuclear power projects: Here's why
What's the story
Amazon Web Services (AWS), the cloud computing arm of Amazon, has announced plans to invest over $500 million in nuclear power.
The investment will be distributed across three projects in Virginia and Washington state.
The move comes as part of Amazon's larger strategy to achieve net-zero carbon emissions, and meet the growing demand for clean energy from its expanding services like generative AI.
Strategic alliance
Amazon partners with Dominion Energy for nuclear project
AWS has partnered with Dominion Energy, a Virginia-based utility company.
The collaboration will see the two explore the possibility of developing a small modular nuclear reactor (SMR) near Dominion's existing North Anna nuclear power station.
SMRs are an innovative breed of nuclear reactors that have a number of advantages over traditional reactors, such as smaller size, faster construction times, and proximity to the grid.
Industry trend
Tech giants turn to nuclear power for data centers
Amazon's investment in nuclear power reflects a growing trend among tech giants.
Earlier this week, Google announced its decision to buy power from SMR developer Kairos Power.
Similarly, Constellation Energy is reviving the Three Mile Island facility to supply electricity to Microsoft's data centers.
Matthew Garman, CEO of AWS, stressed the importance of nuclear power in meeting future energy demands and highlighted the advancements in SMR technology.
Information hub
Virginia's data centers and future power needs
Virginia is home to almost half of all US data centers, with a major chunk located in northern Virginia, aka Data Center Alley.
Dominion Energy provides around 3,500 megawatt (MW) to 452 data centers in its service territory in Virginia.
The company expects an 85% increase in power demand in the next 15 years and the new SMRs are anticipated to provide at least 300MW of power to the region.
Expansion plan
Amazon's nuclear power projects extend to Washington state
Along with its Virginia project, Amazon has also inked a deal with Energy Northwest, a consortium of state public utilities.
The deal includes funding the development, licensing, and construction of four SMRs in Washington state.
These reactors will be owned and operated by Energy Northwest but will supply energy directly to the grid, benefiting both Amazon operations and other utilities connected to the grid.