Amazon, led by AWS CEO Matt Garman, has made a decisive step into nuclear energy with a series of ambitious partnerships aimed at securing a reliable, scalable, and carbon-free energy source for its expansive network of data centres. The e-commerce giant has signed key agreements with Dominion Energy and X-energy, alongside a partnership with Energy Northwest, to deploy small modular reactors (SMRs) across the United States. This strategic move signifies a substantial commitment to clean energy as Amazon seeks to meet the surging power demands of its data centres while upholding its 2040 net-zero emissions goal.
The agreement with Dominion Energy, valued at $48 billion, sets the stage for Amazon to explore SMR development in Virginia. In tandem, a second partnership with Energy Northwest in Washington aims to deploy SMRs close to AWS’s data centres, with X-energy at the forefront, tasked with bringing the technology online. Anchoring a $500 million investment in X-energy through Amazon’s Climate Pledge Fund, Amazon has placed itself at the heart of the SMR sector, betting on a technology expected to bring 5 gigawatts of power capacity to the grid by 2039—a scale sufficient to power a mid-sized city. This move aligns Amazon with a growing group of tech companies like Google and Microsoft that recognise the role of SMRs in meeting the power requirements of artificial intelligence (AI) and data processing demands.
Matt Garman, who joined Amazon in 2005 and took on the CEO role of AWS in June, noted Amazon’s rising confidence in nuclear power’s potential: “Over the last year, we have become much more bullish about what nuclear can provide.” He described SMRs as the “most promising” solution to scale energy production affordably and efficiently, addressing the increasing demand from AI applications that require around-the-clock energy. Garman sees SMRs as instrumental to expanding AWS’s data centre footprint without compromising Amazon’s ambitious sustainability targets, noting that the company’s preference for modular, scalable SMRs allows for flexibility to deploy energy where it’s needed most.
With SMRs, Amazon addresses a critical concern of power reliability that intermittent renewable sources, such as solar and wind, cannot fully satisfy. Unlike traditional nuclear reactors, SMRs are compact—less than 10% the size of a conventional nuclear plant—and come with a shorter build time, lower upfront costs, and reduced environmental impact. The U.S. Department of Energy estimates that by 2050, nuclear capacity could triple to 300 gigawatts, driven by a dual focus on decarbonisation and the relentless energy needs of tech companies.
Dominion Energy’s decision to collaborate with Amazon positions Virginia as a hub for SMR innovation, with plans to generate an initial 300 megawatts to support local energy needs. Virginia, already home to Amazon’s largest U.S. data centre investments, benefits from over $52 billion earmarked for expansion in Virginia, Ohio, and Mississippi. In Louisa County, the planned SMR facility will sit near Dominion’s North Anna power station, positioning Amazon to benefit from a strategic energy location. Amazon’s $11 billion investment in Louisa is part of a larger $35 billion commitment to the state, including support for AI-heavy data centres with higher energy needs, often exceeding 80 megawatts each.
In parallel, Amazon’s partnership with Energy Northwest in Washington aims to bring SMRs near the Columbia Generating Station. Greg Cullen, Energy Northwest’s VP for energy services, highlighted the partnership’s value in fostering new technology without imposing rate increases on local customers. With support from Amazon’s resources and demand profile, Energy Northwest anticipates an operational timeline starting in the early 2030s. Amazon will have the right to purchase power from the initial four modules, generating approximately 320 megawatts, with plans for expansion as needed.
X-energy, founded by Kam Ghaffarian in 2009, has received nearly $900 million in funding, including support from investors such as Ken Griffin and Ares Management affiliates. The company’s current focus includes projects with Dow Chemical in Texas, with anticipated completion by the end of the decade. X-energy CEO Clay Sell expects a robust portfolio of SMR projects by 2035, achieving an operational footprint of up to 5 gigawatts. Sell emphasises that SMRs offer an “unconstrained” demand potential given their reduced land footprint and streamlined deployment.
The transition to nuclear is particularly relevant in the face of exponential energy requirements driven by AI. According to a report from Goldman Sachs, a ChatGPT query consumes nearly ten times more power than a standard Google search, further complicating energy procurement for data centres. This demand surge has resulted in delays and power constraints for prospective data centre customers across the industry.
As the technology progresses, AWS remains optimistic about SMRs as a primary energy solution. Garman is confident that Amazon’s venture into nuclear power will expand beyond its initial projects, facilitated by SMRs’ adaptability for deployment across global data centre hubs. This initiative signals Amazon’s intent to lead the transition to a low-carbon, resilient energy infrastructure, underscoring the unique role SMRs play in an era of energy-intensive digital transformation.
