Amazon Web Services (AWS), the cloud computing branch of Amazon, is set to invest over $500 million in nuclear power, targeting projects in Virginia and Washington state. This investment aligns with Amazon’s broader initiative to achieve net-zero carbon emissions and address the rising demand for clean energy, especially for its expanding services such as generative AI.
Collaboration with Dominion Energy
AWS has joined forces with Dominion Energy, a utility company based in Virginia, to explore the development of a small modular nuclear reactor (SMR) near the existing North Anna nuclear power station. SMRs represent a new generation of nuclear technology characterized by their compact size, quicker construction timelines, and ability to be situated closer to the electrical grid, making them a favorable option for energy production.
The Rise of Nuclear Power Among Tech Giants
Amazon’s substantial investment reflects a growing trend within the technology sector towards nuclear power. Recently, Google announced plans to purchase electricity from Kairos Power, a developer of small modular reactors. Similarly, Constellation Energy is working on reviving the Three Mile Island facility to provide electricity to Microsoft’s data centres. Matthew Garman, CEO of AWS, emphasized the critical role of nuclear energy in satisfying future energy demands, noting significant advancements in SMR technology.
Virginia’s Data Centers and Energy Needs
Virginia is a major hub for data centers, housing nearly half of all such facilities in the United States, particularly in the northern region known as Data Center Alley. Dominion Energy currently supplies about 3,500 megawatts (MW) of power to 452 data centers in its service area. With the expectation of an 85% increase in power demand over the next 15 years, the introduction of new SMRs is projected to contribute at least 300 MW to the region’s energy supply.
Expansion to Washington State
In addition to its Virginia initiatives, AWS has established a partnership with Energy Northwest, a consortium comprising state public utilities, to fund the development, licensing, and construction of four small modular reactors in Washington state. While these reactors will be owned and operated by Energy Northwest, they are designed to deliver energy directly to the grid. This arrangement will benefit both Amazon’s operations and other utilities linked to the grid, enhancing the overall energy infrastructure.
Conclusion
With this significant investment in nuclear power, AWS is positioning itself at the forefront of the clean energy transition. By exploring small modular reactors in partnership with established utility companies, Amazon aims not only to meet its own energy needs for its rapidly expanding services but also to contribute to the broader goal of reducing carbon emissions. As technology companies increasingly recognize the potential of nuclear energy, this trend may lead to more sustainable practices in the tech industry, paving the way for a cleaner energy future.
Amazon’s focus on nuclear power reflects its commitment to environmental sustainability and its recognition of the vital role that innovative energy solutions will play in supporting its growing infrastructure.