Amazon goes nuclear, signs three agreements to develop small reactors to power AI data centres

Amazon has joined the growing list of tech giants looking to nuclear energy as a solution to the soaring power needs of AI-driven data centres. On Wednesday, the company revealed plans to invest in small modular reactor (SMR) technology, becoming the latest in the tech space to explore innovative energy sources.

This move comes hot on the heels of Google’s recent announcement of a nuclear energy partnership with Kairos Power, aiming to use SMRs in the US by 2030. Microsoft has also jumped on the bandwagon, securing a 20-year deal to source 835 megawatts of power from a reactor that will restart at Pennsylvania’s Three Mile Island facility by 2028.

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Amazon disclosed that it will conduct a feasibility study to assess the potential of building an SMR near a Northwest Energy site in Washington state, collaborating with X-Energy to lead the development. While financial terms remain under wraps, the agreement gives Amazon the option to purchase electricity from four SMR modules.

Energy Northwest, a group of state public utilities, could expand the project to include up to eight additional modules, potentially providing a total capacity of 960 megawatts – enough to power around 770,000 US homes.

Matt Garman, CEO of Amazon Web Services, noted that the initiative aims to fast-track the development of nuclear technology capable of supplying energy for decades. Unlike traditional reactors built on-site, SMRs will be manufactured in factories, which could reduce construction costs, although critics argue they may still struggle to achieve the necessary economies of scale.

Nuclear power has strong bipartisan support in the US, given its potential to provide emission-free electricity and high-paying union jobs. However, the technology is not without challenges. No SMR plants are currently in operation in the US, and NuScale – the only company with an approved SMR design – recently shelved a project intended for a government lab in Idaho.

Additionally, concerns remain around nuclear waste management. SMRs, like larger reactors, will produce long-lasting radioactive waste, and the US has yet to establish a permanent repository for it.

The US Nuclear Regulatory Commission, which oversees nuclear projects, has yet to receive detailed plans for Amazon's SMRs. As tech giants like Amazon, Google, and Microsoft increasingly rely on nuclear power, the pressure is on to deliver these technologies in a way that is both sustainable and cost-effective.