#194 After Google and Microsoft, Now Amazon Goes Nuclear

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In a move straight out of a sci-fi novel, Amazon has jumped on the nuclear energy bandwagon, investing half a billion dollars in a bold effort to fuel the power-hungry growth of AI.

Yes, you read that right—nuclear power, once seen as the energy source of yesteryear, is now being revived by none other than the tech behemoth. It’s not just a nod to clean energy; it’s a calculated push to meet the rising demands of AI while reducing carbon footprints.

On Wednesday, Amazon announced two major deals that would support nuclear power projects across the U.S.

First up, the tech giant is working with Dominion Energy to explore the development of Small Modular Reactors (SMRs) in Virginia. SMRs are like the hip, mini version of traditional nuclear reactors, offering faster and less costly construction by scaling down the colossal behemoths that used to take decades (and billions of dollars) to build.

But Amazon didn’t stop there. It’s also part of a $500 million financing deal for X-energy Reactor, a nuclear-reactor and fuel-technology company.

Together, Amazon and X-energy aim to bring over 5 gigawatts of new power projects online by 2039—enough juice to light up millions of homes and, more importantly, power AI data centers. This would mark one of the largest SMR deployments ever, alongside other prominent investors like Citadel founder Ken Griffin, affiliates of Ares Management Corp., and the University of Michigan. Clearly, this is no small bet.

It’s no secret that tech companies like Amazon, Microsoft, and Google are hungry for more power—literal power. The demand for electricity to run AI is skyrocketing. Training large AI models and operating vast data centers is an energy-intensive process. In fact, powering an AI data center can consume as much electricity as a mid-sized city.

The reality is, renewable sources like wind and solar, while crucial, can’t always meet the 24/7 demands of modern data centers. This is where nuclear energy, specifically SMRs, comes into play. These reactors provide a steady, carbon-free power supply that can complement intermittent renewables, ensuring the lights—and the AI models—stay on.

Amazon isn’t the only tech titan dipping its toes into nuclear energy. Microsoft recently announced a deal with Constellation to restart Pennsylvania’s Three Mile Island—yes, the infamous site of the U.S.’s worst nuclear accident. But this time, it’s all about powering the company’s ambitious AI plans. Microsoft clearly isn’t scared off by a little history.

Meanwhile, Google’s parent company, Alphabet, is backing the construction of seven small nuclear reactors by Kairos Power to supply 500 megawatts of nuclear power by the end of the decade. It seems tech giants are all rallying behind nuclear power to fuel their AI-driven futures.

Why Small Modular Reactors (SMRs) Are a Game-Changer

What makes these SMRs so attractive to the likes of Amazon, Microsoft, and Google? Unlike traditional nuclear reactors, which are the size of skyscrapers and cost billions to build, SMRs are compact, factory-built units that can be mass-produced. They are modular by design, meaning you can add more as demand grows, kind of like stacking Lego blocks—except these blocks generate carbon-free electricity.

For example, X-energy’s TRISO-X fuel fabrication facility in Oak Ridge, Tennessee, will produce high-performance reactor fuel. TRISO fuel is one of the safest and most resilient types of nuclear fuel ever developed. This facility represents the future of nuclear energy—compact, safe, and scalable, a far cry from the over-budget, delayed projects of yesteryear.

What About the Numbers?

Amazon and X-energy are planning to power a four-unit, 320-megawatt SMR project with Energy Northwest in Washington state. For perspective, one gigawatt of nuclear power can power roughly 700,000 homes.

The 5 gigawatts Amazon and X-energy plan to bring online by 2039 could supply energy to over 3.5 million homes, or in this case, a fleet of AI data centers (which is exactly why it is being built). Don’t live under the illusion that Amazon is doing it for you.

Google is backing seven nuclear reactors, aiming to generate 500 megawatts of power—enough to power one large AI data center campus.

Even traditional energy companies like Dominion are getting involved. Dominion said that power demand in Virginia is growing by more than 5% a year, expected to double over the next 15 years. SMRs could be the answer to this looming power gap, and Dominion and Amazon are partnering up to explore how to make it happen.

Wrapping Up: The Nuclear Renaissance?

If you told someone in the 1990s that Amazon and Google would be backing nuclear power, they probably would’ve laughed you out of the room. But here we are—tech giants are now at the forefront of a nuclear energy renaissance, driven by the need for reliable, round-the-clock power to fuel AI.

Sure, we still have hurdles. Nuclear projects need to navigate complex regulations, and the road to commercialization is fraught with challenges. But the momentum is undeniable.

As AI continues to push the boundaries of technology, nuclear power may just be the key to keeping the lights on—and the algorithms running.

So, next time you’re chatting with Alexa, just remember: behind that friendly AI voice could be a futuristic nuclear reactor quietly doing the heavy lifting.

Fun fact - Did you know Rolls Royce also manufactures SMRs?

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