Amazon is investing over $500 million in the development of small modular reactors.

• Dominion Energy, Virginia's utility company, has agreed with AWS to investigate the potential construction of a small modular nuclear reactor (SMR) near its North Anna nuclear power station.
• As Amazon's subsidiary in cloud computing, AWS is experiencing a growing demand for clean energy as it expands its services into generative AI. This agreement is a step towards Amazon's goal of achieving net-zero carbon emissions.
• Nuclear power is being acquired by Amazon, like Google and Microsoft, to meet the increasing energy demands from data centers.

Amazon Web Services is investing over $500 million in nuclear power through three projects in Virginia to Washington State. AWS, a subsidiary of Amazon in cloud computing, requires clean energy as it expands its services into generative AI and is part of Amazon's journey towards net-zero carbon emissions.

AWS has partnered with Dominion Energy, Virginia's utility company, to investigate the potential construction of a small modular nuclear reactor (SMR) near their North Anna nuclear power plant. Unlike traditional nuclear reactors, SMRs generate minimal carbon emissions.

An SMR is a compact nuclear reactor that can be constructed near the power grid and has a shorter construction time compared to conventional reactors, enabling it to start operation sooner.

Amazon, Microsoft, and Constellation Energy are the latest large tech companies to invest in nuclear power to meet the growing demands for energy from their data centers.

"Matthew Garman, CEO of AWS, stated that there will be a need for gigawatts of power in the future, and the current wind and solar projects will not be sufficient to meet the demand. As a result, nuclear power presents a great opportunity. Additionally, the technology is advancing to the point where SMRs will be a safe and easy-to-manufacture option in a smaller form."

Nearly half of all the data centers in the U.S. are located in Virginia, with Data Center Alley in Northern Virginia being the hub of most of them. It's estimated that 70% of the world's internet traffic passes through Data Center Alley daily.

Dominion Energy serves approximately 3,500 megawatts of power from 452 data centers in its Virginia service territory. About 70% of this power is located in Data Center Alley. A typical data center requires at least 30 megawatts of power, according to Dominion Energy. In a recent quarterly earnings call, Bob Blue, the utility's president and CEO, stated that individual requests for power have increased to 60 megawatts to 90 megawatts or more. Dominion projects that power demand will increase by 85% over the next 15 years. AWS expects the new Small Modular Reactors (SMRs) to provide at least 300 megawatts of power to the Virginia region.

"Virginia Gov. Glenn Youngkin stated in a release that small modular nuclear reactors will be crucial in establishing Virginia as a leading hub for nuclear innovation. He added that Amazon Web Services' dedication to this technology and their collaboration with Dominion are significant steps towards meeting the future energy demands of a growing Virginia."

Youngkin announced that AWS plans to invest $35 billion by 2040 to set up multiple data center campuses in Virginia.

Garman stated that the SMRs will be connected directly to the grid, which means they will provide power to everything, including data centers, and any device that is plugged into the grid will benefit from this power source.

Energy Northwest, a consortium of state public utilities, has agreed with Amazon to fund the development, licensing, and construction of four small modular reactors (SMRs) in Washington State. These reactors will be owned and operated by Energy Northwest but will provide energy directly to the grid, which will also help power Amazon's operations.

Under the agreement, Amazon has the right to purchase electricity from the first four modules, and Energy Northwest has the option to build up to eight additional modules. The power generated from these modules would be available to both Amazon and Northwest utilities for use in powering homes and businesses.

X-energy, a Maryland-based developer of SMRs and fuel, has received a $500 million financing round led by Amazon's Climate Pledge Fund. The Climate Pledge Fund, Amazon's corporate venture capital fund, invests in early-stage sustainability companies. Other investors include Citadel Founder and CEO Ken Griffin, affiliates of Ares Management Corporation, NGP, and the University of Michigan.

"X-energy CEO J. Clay Sell stated that Amazon and X-energy will shape the future of advanced nuclear energy in the commercial marketplace. In order to fully harness the potential of artificial intelligence, we must ensure that clean, safe, and reliable electrons are available on the grid through proven technologies that can adapt to increasing demand."

In spring 2021, AWS made an investment in a nuclear energy project with Talen, agreeing to purchase nuclear power from the company's Susquehanna Steam Electric Station in Pennsylvania. Additionally, AWS acquired the adjacent nuclear-powered data center campus from Talen for $650 million.