
Amazon has announced its first direct investment in building nuclear reactors to power its AI operations, marking a significant step in the growing trend of tech companies leveraging nuclear energy to meet rising energy demands. Amazon's cloud subsidiary, AWS, will partner with X-Energy and the Washington-based nuclear operator Energy Northwest to deploy a planned fleet of nuclear reactors with a total capacity of 5 gigawatts (GW) by 2040.
The move represents Amazon's response to the mounting energy needs of generative AI and its associated data centers. AI models require massive computational power, leading to skyrocketing electricity consumption. AWS is investing more than $500 million in these new projects to not only power their data centers but also contribute to the broader grid. The planned deployment in partnership with Energy Northwest will initially see four advanced Small Modular Reactors (SMRs) in Washington state, providing up to 960 megawatts (MW) of energy—enough to power roughly 770,000 homes.
AWS also announced an agreement with Dominion Energy to explore the construction of an SMR near the existing North Anna nuclear power station in Virginia. This new reactor could bring an additional 300 MW of power to the region, helping meet the projected 85% increase in energy demand over the next 15 years. Virginia is home to nearly half of all data centers in the United States, and Amazon’s commitment will support the growing energy needs in the region—often called Data Center Alley.

Amazon is not alone in turning to nuclear energy. Google recently signed an agreement with Kairos Power to bring 500 MW of nuclear energy to the grid by 2035, while Microsoft has invested in reviving the Three Mile Island nuclear facility to power its data centers. These moves reflect a collective push by major tech players to secure stable, carbon-free power to meet the rising demands of AI technology. As Matthew Garman, CEO of AWS, noted, “We see the need for gigawatts of power in the coming years, and there’s not going to be enough wind and solar projects to meet these needs, so nuclear is a great opportunity.”
The tech industry's sudden embrace of nuclear power is largely driven by the surge in demand for reliable, round-the-clock energy. Unlike renewables like wind and solar, which can be intermittent, nuclear energy provides consistent power, making it particularly attractive to companies that need to ensure uninterrupted energy supply for their data centers. The move towards nuclear power also represents a significant bet on new SMR technology, which promises faster build times and a smaller physical footprint compared to traditional reactors.
SMRs, which are advanced nuclear reactors designed to be built in smaller, more modular units, offer unique advantages that appeal to tech companies. Their compact size and relatively short construction timelines make them suitable for deployment closer to demand centers—an advantage for tech companies seeking to power their data centers directly. Amazon's investment in X-Energy's SMR technology aims to support more than 5 GW of new nuclear capacity by 2040, illustrating their commitment to scaling this technology as a viable clean energy solution.
Amazon's initiative also includes preserving existing nuclear infrastructure. The company has signed agreements to co-locate a data center next to Talen Energy’s nuclear facility in Pennsylvania, ensuring that AWS data centers are powered directly by carbon-free nuclear energy while helping sustain existing reactors.
However, this rapid push for nuclear energy is not without its challenges. Nuclear power projects—even smaller SMRs—face strict regulatory oversight, and questions remain about the cost and speed of deployment, especially when compared to traditional renewable projects. Despite these challenges, Amazon and other tech giants appear committed to advancing nuclear energy as a way to meet their sustainability goals while ensuring a steady supply of power for the next generation of AI technologies.
Amazon’s direct investment into building nuclear reactors signals a broader shift within the tech industry. As AI continues to grow and data centers multiply, the energy demands are becoming a crucial concern for companies committed to sustainability. With Google, Microsoft, and now Amazon taking the lead in nuclear energy investments, this could be a turning point for how the tech industry addresses its growing carbon footprint while meeting the soaring demand for energy.
It's also worth mentioning the economic impact that investments like this will have on local communities. The agreement with Energy Northwest is expected to create up to 1,000 temporary construction jobs and more than 100 permanent roles once the reactors are fully operational. In Virginia, Amazon’s collaboration with Dominion Energy aligns with broader efforts to establish the state as a leading hub for nuclear innovation.