Amazon invests in nuclear energy, hot on the heels of Google and Microsoft

• Amazon is anchoring a $500 million financing round for X-energy to develop modular nuclear reactors.
• The first sites in Washington and Virginia would provide carbon-free energy to meet growing demand.
• Amazon's announcement follows investments in nuclear energy from Microsoft and Google amid the AI boom.

Big Tech continues to go nuclear as the artificial-intelligence boom drives energy demand to new heights.

Amazon announced on Wednesday that it's anchoring a $500 million investment for X-energy to develop small, advanced modular nuclear reactors, which would provide carbon-free power for some of its data centers.

Amazon Web Services, which provides cloud services to clients, including generative-AI products, relies on large data centers that require huge amounts of energy to operate.

Citadel's founder and CEO, Ken Griffin, as well as affiliates of Ares Management Corp., NGP, and the University of Michigan, are among the investors in the Series C-1 financing round.

"We need smart solutions that can help us meet growing energy demands while also addressing climate change," Amazon's vice president of global data centers, Kevin Miller, said in a statement. "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 companies said their partnership aimed to develop more than 5 gigawatts of new power projects across the US by 2039.

The first sites in Washington and Virginia would provide carbon-free energy to meet growing demand through partnerships with Energy Northwest and Dominion Energy, respectively.

Using clusters of 80-megawatt reactors, the first installation in Washington would begin with four units generating 320 megawatts of power, with the option to scale up to 12 units that deliver 960 megawatts. The highest carbon-emitting coal-powered plants generate roughly 2,000 to 4,000 megawatts, according to Politico's E&E News.

Amazon's investment follows similar interest in nuclear from Microsoft and Google as the tech giants seek out clean energy to fuel foundation AI development for large language models, which require massive amounts of energy.

Microsoft last month helped advance a plan to reopen the Three Mile Island plant, the site of one of the worst nuclear disasters in US history, and Google on Monday announced a partnership in small-modular-reactor tech with Kairos Power.

Earlier this year, Amazon bought a $650 million data center in Pennsylvania that came with a direct line to the nearby nuclear-powered Susquehanna Steam Electric Station.

Other proposals in New Jersey, Ohio, and Texas would build data centers adjacent to nuclear plants to bypass the power grid, IEEE Spectrum reported .

In contrast to a full-scale nuclear facility, X-energy says its modular system is "road-shippable" and can be installed where it is needed.

"Nuclear is an important source of clean and reliable power that our nation needs to meet the growing demand for energy," Griffin said in a statement. "X-energy provides an impactful solution to a critical challenge — and the support Amazon, Dow, and other major corporations have provided underscores its potential and merit."