AWS invests $500 million in small modular reactors (SMRs) to support clean energy goals and AI-powered data centers.
Projects in Virginia and Washington involve partnerships with Dominion Energy and X-energy to boost local power capacity.
By Falito Villienuve Tandra, Salma Farah Faiza, and Iman Satyo Adi
October 18, 2024 at 16:30 GMT+7
Amazon Web Services (AWS) has announced a substantial investment of over US$500 million to develop small modular nuclear reactors (SMRs), aiming to address its growing energy demands. With projects spanning from Virginia to Washington state, this initiative is a crucial part of Amazon’s broader strategy to achieve net-zero carbon emissions while supporting the expansion of its generative AI services.
AWS has partnered with Dominion Energy in Virginia to explore the development of an SMR near Dominion’s North Anna nuclear power station. SMRs, known for their smaller footprint and quicker construction times, offer a promising alternative to traditional reactors, making them a viable option for integrating into the power grid. Read more: Rio Tinto's US$6.7 Billion Arcadium Lithium Acquisition
This investment positions Amazon as the latest major tech company to turn to nuclear power, following similar moves by Google and Microsoft to secure stable energy supplies for their data centers.
AWS Building | Source: Shutterstock
Virginia, which houses nearly half of the U.S.'s data centers, is experiencing a significant surge in demand for clean and reliable energy. This is largely driven by the rapid expansion of tech infrastructure in the region. Dominion Energy has projected a sharp increase in power requirements, especially with the growth of Amazon Web Services (AWS) campuses.
To meet this rising demand, AWS’s small modular reactors (SMRs) are expected to contribute 300 megawatts of clean energy, providing a crucial power source for these data centers. This development is part of AWS’s broader, long-term vision, which includes a US$35 billion investment to expand its data center infrastructure across Virginia by 2040.
Incorporating SMRs into the state’s energy grid allows AWS to not only ensure stable energy supplies for its own operations but also reinforcing Virginia’s growing reputation as a major tech hub, with sustainable energy solutions at its core.
Former Amazon CEO, Jeff Bezos | Source: Reuters
Amazon Web Services (AWS) is investing significantly in nuclear power by funding and securing energy from four small modular reactors (SMRs) developed by Energy Northwest in Washington, which have potential expansion. Read more: Fed’s First Aggressive Rate Cut Since Covid Strikes Markets
X-energy will supply the advanced nuclear technology for these SMRs, supported by Amazon’s Climate Pledge Fund as part of a US$500 million investment round. This initiative aligns with U.S. goals to boost clean energy production with Energy Secretary, Jennifer Granholm, emphasizing the need for clean power in data centers.
This move by AWS is part of a broader trend among tech companies like Google and Microsoft to turn to nuclear energy, driven by the increasing power demands from data centers and the limited availability of wind and solar energy.
Sources: CNBC
Financial Times
The Washington Post
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