Amazon Invests $500m in Nuclear Energy for Clean AI by 2040
Amazon is emerging as an influential force in the nuclear energy sector, strategically investing in next-generation technology to meet its ambitious sustainability goals and support the rapid expansion of its data centre infrastructure.
With more than US$500 million already committed, the company’s nuclear approach reflects a broader trend: harnessing reliable, carbon-free power to fuel the digital and energy transitions.
Deploying small modular reactors
Amazon has committed more than US$500mn to advance SMRs, which are innovative nuclear reactors designed for flexibility and quicker construction than traditional plants.
SMRs can be placed near data centres and communities, allowing Amazon to secure stable, low-carbon energy while enhancing local energy reliability.
The adoption of SMRs offers a reduction in greenhouse gas emissions and supports the phase-out of diesel generators and coal-fired power plants.
The financial and temporal benefits of SMRs stem from their lower capital investments and shorter build times compared to traditional nuclear reactors.
Strengthening existing nuclear assets
In partnership with Talen Energy, Amazon will co-locate a new data centre campus adjacent to the Susquehanna nuclear facility in Pennsylvania.
This collaboration includes a long-term energy supply agreement, securing 1,920 MW of carbon-free electricity until 2042, which will support the energy demands of AWS data centres and their expanding AI infrastructure.
Plans under this deal also envision exploring SMR development and enhanced nuclear capacity in Talen’s Pennsylvania operations, potentially increasing contributions to the PJM grid.
This partnership is a component of Amazon's broader US$20 billion investment across Pennsylvania, expected to create 1,250 high-skilled employment opportunities.
“Amazon is proud to help Pennsylvania advance AI innovation through investments in the Commonwealth’s economic and energy future,” says Kevin Miller, Vice President of Global Data Centres at AWS.
Advancing nuclear technology
Through its Climate Pledge Fund, Amazon led a US$500mn investment round in X-energy, which is pioneering advanced SMRs and high-assay low-enriched uranium (HALEU) fuel.
This initiative is part of a broader US$2bn corporate venture, focused on accelerating the development of sustainable technologies and services, enabling Amazon and other companies to reach net-zero emissions by 2040 - 10 years ahead of the Paris Agreement's target.
The investment will support X-energy’s efforts in design, licensing, and fuel production, projected to deliver over 5 GW of new nuclear capacity by 2039.
Direct power solutions for data centres
Amazon intends to directly supply its data centres with nuclear energy.
At the Susquehanna site, this plan is already in progress, offering a steady, emission-free energy solution for the growing computational needs in AI and cloud services.
"At Amazon, our culture is rooted in innovation and speed,” says Kara Hurst, Amazon’s Chief Sustainability Officer.
She adds: “AI can enable both and we’re using it in ways big and small to make progress. This is just the beginning and I’m excited about all the ways AI can help us reach our goals.”
Amazon is actively enhancing new SMR deployments, with plans to construct four reactors at Washington's Columbia Generating Station, targeting an initial output of 320 MW.
Furthermore, in Virginia, Amazon is exploring a 300 MW SMR project with Dominion Energy at the North Anna site, with vendor selection scheduled for 2025.
Economic growth and energy security
Each nuclear-linked project undertaken by Amazon holds potential for significant economic benefits.
In Washington, the SMR project is expected to generate up to 1,000 construction jobs and over 100 permanent positions, while the Pennsylvania data centre initiative will spur construction employment and modernise local infrastructure.
Mac McFarland, President and CEO of Talen, says: “Our agreement with Amazon is designed to provide us with a long-term, steady source of revenue and greater balance sheet flexibility through contracted revenues. We remain a first mover in this space and intend to continue to execute on our data centre strategy.
"Talen is well-positioned to support Amazon’s energy needs as it invests further in the Commonwealth of Pennsylvania.”
These ventures also play a role in cementing America’s position in global technology and energy leadership, aiming to secure energy independence and grid stability, which are vital for continuous, large-scale AI operations.
“We’re proud to be expanding our world-class data centre infrastructure, bringing more renewable energy projects online and supporting the country’s vision to be a global AI leader,” says Matt Garman, CEO of Amazon Web Services (AWS).
