Antony Parsons
Joining the race for sustainable power, Amazon Web Services (AWS) investing over $500 million to harness the potential of small modular reactors (SMRs), announcing three projects from Virginia to Washington state, to fuel its growing data center demands and achieve net-zero carbon emissions.
$500 Million Investment in Small Modular Reactors
Amazon Web Services is investing over $500 million in small modular reactors (SMRs) across three projects in Virginia and Washington state, marking a significant step towards clean energy and net-zero carbon emissions, with AWS CEO Matthew Garman highlighting the technology’s safety and efficiency advancements. This strategic move reflects the growing energy requirements driven by the AI revolution.
The Need for Clean Energy
Data centers growing demand for power necessitates clean energy sources, as U.S. data center power use is expected to triple between 2023 and 2030, requiring 47 gigawatts of new energy.
Data Centers Growing Demand for Power
Data centers are driving up electricity demand, with developers in Northern Virginia requesting power equivalent to several nuclear reactors from Dominion Energy Inc. The growing need for clean energy is fueled by the expansion of services into generative AI, requiring gigawatts of power in the coming years.
Partnerships and Collaborations
AWS signed agreements with Dominion Energy and X-Energy to develop small modular reactors, exploring opportunities for clean energy generation and carbon-free power.
Agreements with Dominion Energy and X-Energy
AWS signed an agreement with Dominion Energy to explore developing a small modular nuclear reactor near Dominion’s existing North Anna nuclear power station in Virginia. Additionally, Amazon is buying a stake in US nuclear developer X-Energy, collaborating to deploy small modular reactors for low-carbon electricity to power its data centers.
The Future of Nuclear Power
Advancements in Small Modular Reactor (SMR) technology are expected to play a crucial role in shaping the future of nuclear power, offering a safer and more efficient source of clean energy.
Advancements in SMR Technology
SMRs have a smaller footprint, allowing them to be built closer to the grid, and have faster construction times than traditional reactors, enabling them to come online sooner, making them an attractive solution for data centers growing power needs, with nuclear startup Oklo planning to deploy nuclear-powered data centers by 2028.
Industry Trends and Implications
The growing trend of co-locating data centers with carbon-free power plants is expected to shape the future of the industry, with Amazon’s investment setting a precedent for energy costs and sustainability.
Co-Locating Data Centers with Carbon-Free Power Plants
The trend of co-locating data centers with carbon-free power plants is gaining momentum, as seen with Amazon’s purchase of a nuclear-powered data center in Pennsylvania, highlighting the growing need for clean energy to power data centers and artificial intelligence.
Industry Shift and Competitor Moves
The tech industry is changing the way it thinks about energy. Companies like Amazon, Google, and Microsoft are looking for new ways to power their growth, especially for data centers. Google is partnering with Kairos Power to use small modular reactors, Microsoft is also getting in on the action, benefiting from a new nuclear project at Three Mile Island. These moves are all about meeting the huge energy demands of AI and data centers, and show that nuclear is becoming a key part of the tech industry’s sustainable strategy.
