Amazon is making headlines with its latest investment in the American nuclear energy sector. The tech giant has decided to purchase a stake in X-energy, a nuclear developer that focuses on small modular reactors (SMRs). This move is part of Amazon’s broader plan to enhance its energy sources for powering data centers with low-carbon electricity.
In a recent announcement, X-energy revealed that Amazon is leading a $500 million fundraising effort. This funding aims to help develop and license a new generation of SMRs, which the company claims are more efficient than traditional large-scale nuclear reactors. High-profile investors including Ken Griffin of Citadel and others from Ares Management and the University of Michigan are also backing the initiative.
Although the exact size of Amazon’s stake in X-energy has not been disclosed, the tech company will have two seats on X-energy’s board of directors. This initiative is part of a larger strategy by Amazon to delve into nuclear energy. They are actively supporting a project for SMR development in Washington state, which will be managed by Energy Northwest—a consortium formed by state public utilities. Additionally, Amazon has partnered with Dominion Energy to explore another SMR project in Virginia near the North Anna nuclear power station.
The goal set by Amazon and X-energy is to generate over 5 gigawatts of power from SMRs by 2039, which would be sufficient to supply electricity to approximately 4 million homes. This investment underscores a trend where technology companies are increasingly backing nuclear projects to meet their commitments to sustainability and reduce carbon footprints.
Just this week, Google announced its order of multiple SMRs from Kairos Power, making it the first tech company to engage with new nuclear power plants. Microsoft also recently expressed interest in securing a long-term electricity supply from the unused Three Mile Island nuclear facility if it is restarted by Constellation Energy.
X-energy has pioneered a reactor that uses helium gas as a coolant instead of water, allowing for more efficient heat management. Each of its Xe-100 reactors can produce 80 megawatts of electricity, and they can be clustered together to form setups with a capacity similar to traditional gas power plants.
The U.S. government is investing significantly in companies that are working on SMRs to help reduce costs and accelerate construction timelines. Despite the challenges of raising funds for new nuclear technologies in the past, the increasing energy demands—especially driven by the growth of AI data centers—are prompting a resurgence of interest and investment in nuclear power among tech firms.
Kevin Miller, Amazon’s Vice President for Global Data Centers, highlighted that collaborating with X-energy is vital for achieving the company’s net-zero sustainability goals by 2040. Meanwhile, Clay Sell, X-energy’s CEO, stressed the importance of delivering clean, reliable power to fully harness the potential of artificial intelligence.
Investment bank analyst James West noted that Amazon’s recent actions could encourage other tech companies to consider stakes in SMR firms, securing their own power supplies. He predicted that this investment marks a significant step in the ongoing nuclear renaissance, led primarily by major tech companies.