Amazon (Nasdaq: AMZN) has announced plans to invest in nuclear energy projects, focusing on Small Modular Reactors (SMRs), as part of its efforts to reduce carbon emissions. This move follows a similar announcement by Google (Nasdaq: GOOGL) on Monday, revealing a deal to purchase energy from SMRs developed by Kairos Power.
The e-commerce giant has signed three agreements to support nuclear energy development. In Washington state, Amazon is partnering with Energy Northwest to develop four advanced SMRs, with an initial capacity of 320 megawatts, potentially expandable to 960 megawatts. In Virginia, the company is exploring an SMR project with Dominion Energy (NYSE: D) near an existing nuclear power station, aiming to add at least 300 megawatts of power.
Amazon is also leading a $500 million funding round for X-energy, a developer of SMR reactors and fuel. The investment includes manufacturing capacity to support over five gigawatts of new nuclear energy projects using X-energy’s technology by 2039.
These initiatives align with Amazon’s claim of having reached its 2030 goal to match all electricity consumed by its global operations with 100% renewable energy, seven years ahead of schedule.
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The tech industry’s interest in nuclear power comes as companies seek solutions to meet growing energy demands, particularly from data centers and AI operations, while attempting to reduce carbon emissions. However, SMR technology is still in its early stages, with only one SMR design (by NuScale Power) approved by the U.S. Nuclear Regulatory Commission so far.
Proponents of SMRs argue that they offer faster construction times and more flexible siting options compared to traditional nuclear plants. Critics, however, raise concerns about nuclear waste storage and safety issues. The industry recently faced a setback when NuScale’s plans for an SMR in Idaho were abandoned due to rising costs.
It’s worth noting that Amazon, along with other tech companies, has previously signed deals to buy power from existing nuclear plants, not just new SMR projects.
The nuclear energy projects are expected to create jobs, with Amazon projecting up to 1,000 temporary construction jobs and over 100 permanent positions for the Energy Northwest project alone.
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