Amazon has joined its peers—Microsoft, Google, and Oracle—in the bold move toward using modular nuclear reactors to power its data centers with carbon-free energy. This shift aims to reduce reliance on fossil fuels. Amazon has signed agreements with three companies developing Small Modular Reactors (SMRs), which are designed to provide flexible, low-carbon energy close to the grid. This clean energy will support both Amazon’s operations and local communities.
“Nuclear is a safe source of carbon-free energy that can help power our operations and meet the growing demands of our customers while helping us progress toward our Climate Pledge commitment to be net-zero carbon across our operations by 2040,” said Matt Garman, CEO of Amazon Web Services (AWS).
One of these deals is with Energy Northwest in Washington state, where Amazon’s Seattle headquarters is located. Energy Northwest will provide four SMRs that will initially generate 320 MW of power, with the potential to reach 960 MW—enough to power over 770,000 homes in the U.S. Amazon has also partnered with SMR developer X-energy to further its energy projects in the Pacific Northwest, using technology that could deliver more than five gigawatts of nuclear energy.
In Virginia, home to Amazon’s second headquarters, the company signed an agreement with Dominion Energy to explore building an SMR project near the existing North Anna nuclear power station. This project aims to bring at least 300 MW of power to the region.
“Our agreements will encourage the construction of new nuclear technologies that will generate energy for decades to come,” added Garman.
Why are hyperscalers turning to nuclear power?
Amazon’s push into nuclear power follows a similar move by Google, which recently bought modular nuclear reactors from Karios to power its own data centers, and Oracle announced its gigawatt data center, powered by small modular nuclear reactors. The growing energy needs of tech giants are driven by the increasing demand for running power-intensive processes, like AI workloads. SMRs are a practical solution because they can be placed directly on-site or near data centers, providing stable, long-term energy while reducing dependence on local grids.
Amazon has been investing heavily in energy infrastructure, including a recent purchase of a data center campus near a nuclear plant in Pennsylvania. Its investments in SMRs are part of its commitment to match all the electricity used by its global operations, including data centers, with 100% renewable energy. In 2023, Amazon claimed that all the electricity consumed by its operations was matched with renewable energy.
Beyond energy, these nuclear projects will also create economic benefits for local communities. For example, the Energy Northwest project is expected to create up to 1,000 temporary construction jobs and more than 100 permanent positions.
“SMRs and fusion energy can play critical roles in providing consumers and businesses reliable zero-emission energy,” said Jay Inslee, Governor of Washington state.
Hyperscalers like Amazon and Microsoft are also helping preserve older nuclear sites that were due for decommissioning. Microsoft, for instance, recently revived a unit at the historic Three Mile Island nuclear power plant. These investments signal a growing interest among tech giants in using nuclear energy to support their clean energy goals and meet the ever-increasing power demands of their data centers.
