By Jamie Hyland
In a major push towards sustainable energy solutions, Amazon has taken a significant step by investing in U.S. nuclear energy developer X-energy. This move aligns with Amazon’s broader goal of reducing its carbon footprint while ensuring a reliable energy supply for its ever-expanding global data centers and AI infrastructure, especially through Amazon Web Services (AWS). By anchoring a $500 million fundraising round for X-energy, Amazon aims to leverage advanced nuclear technology, specifically small modular reactors (SMRs), to power its data centers with low-carbon electricity.
Amazon’s Climate Pledge Fund, Citadel Founder and CEO Ken Griffin, affiliates of Ares Management Corporation, NGP, and the University of Michigan, invest approximately $500 million in Series C-1 financing round for X-energy.
“This collaboration between Amazon and X-energy is a significant step toward accelerating advanced nuclear technologies that can help us bring new sources of carbon-free energy to the grid cost-effectively and safely,” said Kevin Miller, Amazon’s Vice President of Global Data Centers. “We need smart solutions that can help us meet growing energy demands while also addressing climate change. X-energy’s technology will be integral in helping achieve this and is an important step in Amazon’s work to achieve our Climate Pledge commitment to be net-zero by 2040.”
The investment forms part of Amazon’s long-term strategy to meet its sustainability commitments while keeping pace with the increasing energy demands driven by the rapid growth of AI technologies, machine learning, and cloud computing. AWS, Amazon’s cloud arm, powers much of the world’s online infrastructure, and as the company continues to scale, it is actively searching for clean, reliable energy solutions.
“Amazon and X-energy are poised to define the future of advanced nuclear energy in the commercial marketplace,” said X-energy CEO J. Clay Sell. “To fully realize the opportunities available through artificial intelligence, we must bring clean, safe, and reliable electrons onto the grid with proven technologies that can scale and grow with demand. We deeply appreciate our earliest funders and collaborators, notably the U.S. Department of Energy and Dow Inc. With Amazon, Ken Griffin, and our other strategic investors, we are now uniquely suited to deliver on this transformative vision for the future of energy and tech.”
Small Modular Reactors: The Future of Clean Energy
At the heart of Amazon’s collaboration with X-energy is the deployment of SMRs. Unlike traditional large-scale nuclear reactors, SMRs are designed to be more efficient, safer, and quicker to deploy. X-energy’s Xe-100 reactors use helium gas as a coolant instead of water, which allows for better heat diversion from the core. Each Xe-100 unit generates 80 MWe, and they can be scaled into four-pack systems, producing 320 MWe, a similar output to that of conventional gas-fired power plants.
Amazon’s decision to support the development of SMRs comes at a time when tech giants are actively seeking alternative energy sources to meet growing demands without compromising their environmental pledges. Nuclear energy, particularly in the form of SMRs, offers a solution with its ability to generate continuous, low-carbon power, which is critical for data centers that operate 24/7.
Collaboration with X-energy and Other Industry Leaders
Amazon’s investment in X-energy goes beyond just financial backing. The e-commerce giant will take two seats on X-energy’s board of directors, positioning itself to have strategic oversight in the development of this next-generation nuclear technology. This collaborative effort is also supported by other high-profile investors, including Ken Griffin, the founder and CEO of Citadel, as well as Ares Management Corporation, private equity firm NGP, and the University of Michigan.
Additionally, Amazon is exploring various SMR projects across the U.S. It has partnered with Energy Northwest, a consortium of public utilities in Washington, to support a local SMR initiative. Amazon has also signed an agreement with Dominion Energy to assess the viability of an SMR project near the existing North Anna nuclear power station in Virginia.
A Step Towards a Low-Carbon Future
Amazon’s stake in nuclear energy is part of a broader industry trend among tech companies seeking low-carbon power solutions to fuel their vast digital operations. Notably, Google has also jumped into the nuclear space, recently commissioning several SMRs from Kairos Power. Microsoft, too, has made headlines with its decision to secure 20 years’ worth of electricity from the once-dormant Three Mile Island nuclear power plant, pending its restart by Constellation Energy.
By 2039, Amazon and X-energy aim to bring more than 5 gigawatts of SMR-generated power online—enough to supply electricity to approximately 4 million homes. This ambitious goal underscores the potential of nuclear energy, particularly SMRs, to play a pivotal role in the future energy landscape for tech-driven industries.
Conclusion
Amazon’s investment in X-energy signifies a bold commitment to nuclear energy as a solution to the increasing energy demands of AI and data centers. With the promise of low-carbon, reliable electricity, SMRs could become a game-changer for both the tech sector and the broader energy market. As the push for sustainable, scalable energy continues, Amazon is positioning itself at the forefront of this critical transformation.
