Amazon has announced its investment in nuclear energy to support the growing electricity demands of its artificial intelligence initiatives and Amazon Web Services. The company has earmarked money for advancing or supporting existing nuclear power plants, primarily smaller modular reactors. These reactors are simpler to construct compared to traditional large-scale nuclear power plants, and according to the International Atomic Energy Agency, they can be established in a larger number of locations.
Amazon's investments nod at projects in both Washington state and Virginia, collaborating with both government-led and private utility companies such as Dominion Energy and Energy Northwest. Further, Amazon has shown interest in a company working on advancing nuclear technology. The generated nuclear energy will be utilized to power Amazon's facilities and nearby localities.
Dominion estimates that power demand in Virginia is increasing at a rate of 5% each year, with projections to double within 15 years. To aid next-generation Small Modular Reactors (SMRs), Amazon is also partnering with X-Energy, the creator of this new technology. This is part of a $500 million funding round involving the University of Michigan, Ares Management, and Citadel hedge fund CEO, Ken Griffin.
In the past month, other tech heavyweights like Alphabet's Google and Microsoft have also turned to nuclear energy investments. This trend is in response to the ongoing search for cleaner energy sources to meet climbing electricity demand, a result of increased usage in data centers and AI technology.