Amazon.com AMZN -0.43%decrease; red down pointing triangle signed deals to back nuclear-power projects across the U.S., becoming the latest big tech company to commit to fueling a renaissance of the electricity source to power the rapid development of artificial intelligence.
On Wednesday, Amazon said it agreed to work with Dominion Energy D 5.10%increase; green up pointing triangle to explore the development of small modular nuclear reactors, or SMRs, in Virginia. That could enable faster and less costly construction by building smaller reactors instead of behemoth bespoke plants that can run years overdue and billions over budget.
Amazon also said it was part of a $500 million financing deal for X-energy Reactor, a nuclear-reactor and fuel-technology company. The Seattle tech giant and privately held X-energy are working together to bring more than 5 gigawatts of new power projects online in the U.S. by 2039, in what they say would be the biggest deployment of SMRs to date. Others involved in the financing deal include Citadel founder and Chief Executive Ken Griffin, affiliates of Ares Management Corp.and the University of Michigan.
“We need smart solutions that can help us meet growing energy demands while also addressing climate change,” Amazon Vice President of Global Data Centers Kevin Miller said in a news release, adding, “X-energy’s technology will be integral in helping achieve this.”
As part of the agreement, Amazon and X-energy will provide initial backing for a four-unit, 320-megawatt project with regional utility Energy Northwest in central Washington state.
The nuclear deals announced Wednesday follow recent forays by Microsoft and Google into nuclear power. Last month, Microsoft and Constellation announced a deal to restart Pennsylvania’s Three Mile Island to help power the tech giant’s AI ambitions. On Monday, Google parent Alphabet said it would back the construction of seven small nuclear reactors by privately held Kairos Power reactors to feed its AI needs. The deal targets adding 500 megawatts of power starting at the end of the decade.
Dominion said that power demand in Virginia is growing by more than 5% a year and is expected to double in the next 15 years, and therefore new power generation sources need to be developed. SMRs could play a key role in this, and the agreement between the utility and Amazon marks the companies’ work to explore development and financing of the smaller reactors.
X-energy said it launched the Series C-1 financing round to provide cash to fund the completion of its reactor design and licensing, as well as the first phase of its TRISO-X fuel fabrication facility in Oak Ridge, Tenn.
In addition to the deals announced Wednesday, Amazon said in a post on its website that it previously signed an agreement to co-locate a data center next to a nuclear facility in Pennsylvania owned by Talen Energy. This will directly power the data center and help preserve the existing reactor, Amazon said.
