Amazon is making a significant stride in its pursuit of carbon-free power, announcing substantial investments and partnerships in small modular nuclear reactors (SMRs) to power its growing operations, particularly its energy-intensive data centers and AI services. This move underscores a strategic pivot towards nuclear energy as a scalable, reliable, and safe source to meet increasing electricity demands and achieve ambitious sustainability targets.
The Cascade Advanced Energy Facility: A Flagship SMR Project
A cornerstone of Amazon’s nuclear strategy is its involvement in the Cascade Advanced Energy Facility in Washington state. This state-of-the-art facility will utilize advanced SMRs developed by X-energy, with construction expected to commence by the end of the decade and operations targeted for the 2030s.
Partnership with Energy Northwest and X-energy
Amazon has partnered with Energy Northwest, a consortium of Washington public utilities, and X-energy, a leading developer of next-generation nuclear reactors and fuel. Through its Climate Pledge Fund, Amazon has made a capital investment in X-energy, helping to fund the completion of X-energy’s reactor design, licensing, and the first phase of its TRISO-X fuel fabrication facility.
Xe-100 Reactor Technology
The Cascade Advanced Energy Facility will feature X-energy’s Xe-100 reactor design, which is an advanced high-temperature gas-cooled reactor. These SMRs are smaller than traditional nuclear reactors, designed for simpler construction, faster deployment, and lower costs, with a reduced physical footprint.
Scalable Power Generation
Initial plans for the Cascade facility envision four SMR units with an initial capacity of 320 megawatts (MW), with the potential to expand to 12 units, generating a total capacity of 960 MW. This capacity is enough carbon-free energy to power approximately 770,000 U.S. homes. Amazon will have the right to purchase electricity from the initial four reactors.
Why Nuclear? Addressing Soaring Energy Demand and Climate Goals
Amazon’s deepened commitment to nuclear energy comes as the company faces rapidly escalating energy demands from its global operations, particularly its cloud computing division, Amazon Web Services (AWS), and the increasing power requirements of AI models.
Reliable, Carbon-Free Energy
Nuclear power offers a 24/7, reliable, and scalable source of carbon-free energy, aligning with Amazon’s goal to achieve net-zero carbon across its operations by 2040. While Amazon has been a significant investor in wind and solar, nuclear provides baseload power that can complement intermittent renewable sources.
Fueling AI and Data Centers
The digital tools and advanced AI technologies that underpin much of Amazon’s business require continuous, robust power. SMRs can be deployed closer to data centers, providing a stable and low-carbon energy source directly where it’s needed.
Economic and Community Benefits
The Cascade project is expected to bring significant economic benefits to local communities, including the creation of over 1,000 temporary construction jobs and more than 100 permanent operational roles. A new training center at Columbia Basin College, supported by Amazon and Energy Northwest, will prepare students for jobs in advanced nuclear energy using an X-energy control room simulator.
Broader Nuclear Energy Ambitions
Amazon’s investment in the Cascade Advanced Energy Facility is part of a larger, strategic initiative to deploy over 5 gigawatts (GW) of new nuclear energy to the U.S. grid by 2039. This represents the largest commercial deployment target for SMRs to date.
Climate Pledge Fund Investments
Through its Climate Pledge Fund, Amazon has committed more than $500 million to advance SMR technology, including investments in X-energy. This funding supports design, licensing, and fuel production efforts, and is part of a broader $2 billion corporate venture focused on sustainable technologies.
Global Collaborations
Amazon and X-energy have also signed an agreement with South Korea’s Doosan Enerbility and Korea Hydro & Nuclear Power Co. to accelerate the deployment of new SMRs in the U.S., leveraging international expertise in manufacturing and supply chain processes.
Navigating Regulatory Pathways
While the outlook is optimistic, the regulatory path for SMRs in the U.S. still presents challenges. X-energy’s Xe-100 reactor design, for example, is awaiting U.S. Nuclear Regulatory Commission (NRC) operating license approval, which could extend timelines for power generation. However, Amazon’s direct investments and partnerships aim to accelerate these processes and de-risk early-stage development for utilities.
Amazon’s substantial investment in modular nuclear reactors signals a growing confidence in this advanced technology to deliver on ambitious clean energy goals and meet the escalating power demands of the digital economy. The Cascade Advanced Energy Facility is poised to become a key project in the resurgence of nuclear power in the United States.
