Amazon invests $500M following Google and Microsoft to go nuclear
As the race for artificial intelligence (AI) accelerates, major tech players like Amazon, Google, and Microsoft are increasingly turning to nuclear energy to meet the soaring power demands of their operations. This trend marks a significant shift in how these companies are strategizing around clean energy solutions, particularly as they commit to ambitious carbon reduction goals.
On October 16, Amazon unveiled a series of agreements to invest in Small Modular Reactors (SMRs), a next-generation nuclear power technology that offers a compact and scalable alternative to traditional nuclear plants.
With the global energy consumption of data centers expected to more than double in the next three years, the need for reliable and emission-free power sources is critical. According to Bain & Company, these data centers will account for an estimated 44% of new electricity demand growth in the U.S. by 2028.
Amazon’s plans include the development of four SMRs in partnership with Energy Northwest, a regional utility in Washington. Initially, these reactors are expected to generate 320 megawatts, with the potential to expand to 960 megawatts, enough energy to power over 770,000 homes. Additionally, Amazon is investing in X-Energy, a key developer of SMR technology, which will support the Energy Northwest project.
In Virginia, Amazon has also partnered with Dominion Energy to explore an SMR development near the North Anna nuclear power station, projected to deliver at least 300 megawatts of power. “Nuclear is a safe source of carbon-free energy that can help power our operations and meet the growing demands of our customers,” said Matt Garman, CEO of Amazon Web Services (AWS).
This recent focus on nuclear energy is not an isolated effort for Amazon. The company previously made headlines with a $650 million deal with Talen Energy, which involved acquiring a nuclear-powered data center in Pennsylvania.
Google is similarly ramping up its nuclear ambitions. On October 14, the company announced a power purchase agreement with Kairos Power, which will allow it to acquire energy from multiple SMRs expected to go online by 2030. The deal is anticipated to deliver around 500 megawatts of clean power, supporting Google’s growing energy needs for AI development. Michael Terrell, Google’s senior director for energy and climate, emphasized the role of nuclear energy in fostering sustainable growth: “We believe that nuclear energy has a critical role to play in supporting our clean growth and helping to deliver on the progress of AI.”
Microsoft is taking a different route by planning to reactivate a unit at the infamous Three Mile Island facility in Pennsylvania, which was shut down following a partial meltdown in 1979. The agreement with Constellation Energy aims to reopen one unit by 2028, which could provide Microsoft with 835 megawatts of power. This initiative highlights Microsoft’s commitment to exploring both traditional and innovative energy sources.
In addition to its agreements, Microsoft has also invested in Helion, a startup focused on commercializing nuclear fusion, the same process that powers the sun. This partnership underscores the tech giant’s ambition to not just consume but also shape the future of clean energy.
The urgency for clean energy solutions among these tech giants stems from their collective goal to achieve carbon neutrality within the next couple of decades. Amazon aims for net-zero emissions by 2040, while Google and Microsoft have set similar targets for 2030. Nuclear energy stands out as a viable option, providing a consistent and large-scale energy supply without the greenhouse gas emissions associated with fossil fuels.
Despite the enthusiasm around nuclear energy, there are challenges. Currently, only three SMRs are operational globally, with none in the U.S., and all proposed projects require regulatory approval. Additionally, there are concerns about the long-term management of nuclear waste, a significant issue that remains unresolved.
The investments by these companies signal a broader trend within the tech industry toward innovative energy solutions that prioritize sustainability. Yann LeCun, Meta’s AI chief, recently noted the necessity for nuclear energy in supporting AI infrastructure, suggesting that data centers will increasingly be co-located near nuclear plants to ensure a steady supply of low-emission power.
As these major players continue to explore nuclear options, the intersection of technology, energy, and sustainability will remain a focal point. The strategic moves by Amazon, Google, and Microsoft not only reflect their individual commitments to clean energy but also their recognition of the pivotal role nuclear power can play in supporting the rapid growth of AI technologies. With energy demands projected to rise significantly in the coming years, the collaboration between Big Tech and the nuclear industry could pave the way for a cleaner, more efficient energy landscape, provided the associated challenges are addressed effectively.