How is Amazon Using Nuclear to Power AI & Reach Net Zero?
Amazon is emerging as an influential force in the nuclear energy sector, strategically investing in next-generation technology to meet its ambitious sustainability goals and support the rapid expansion of its data centre infrastructure.
With more than US$500m already committed, the company’s nuclear approach reflects a broader trend: harnessing reliable, carbon-free power to fuel the digital and energy transitions
Pioneering small modular reactors (SMRs)
Amazon has invested more than US$500m to develop SMRs, advanced nuclear reactors designed to be more flexible and quicker to build than conventional plants.
SMRs can be deployed closer to data centres and communities, helping Amazon secure dedicated, low-carbon power while contributing to regional energy resilience.
SMRs generate electricity with minimal GHG emission and they are able to replace diesel generators and transition away from coal-fired plants.
The capital investment is lower when creating SMR compared to more traditional models as well as a shorter construction cycle, making them more accessible.
Preserving existing nuclear infrastructure
Through a partnership with Talen Energy, Amazon is co-locating a new data centre campus next to the Susquehanna nuclear facility in Pennsylvania.
Amazon has entered a long-term agreement with Talen Energy to purchase 1,920 MW of carbon-free electricity through 2042, supporting the power needs of AWS data centres and the expansion of AI infrastructure.
The deal includes plans to explore the development of SMRs and expand nuclear output within Talen’s Pennsylvania operations, potentially adding new energy to the PJM grid.
It forms part of Amazon’s wider US$20bn investment in the state, expected to create 1,250 high-skilled jobs.
The partnership reflects rising electricity demand driven by data and AI growth, and it provides Talen with steady contracted revenue.
“Amazon is proud to help Pennsylvania advance AI innovation through investments in the Commonwealth’s economic and energy future,” says Kevin Miller, Vice President of Global Data Centers at AWS.
“That’s why we’re making the largest private sector investment in state history – US$20bn – to bring 1,250 high-skilled jobs and economic benefits to the state, while also collaborating with Talen Energy to help power our infrastructure with carbon-free energy.”
Backing next generation nuclear innovation
Amazon’s Climate Pledge Fund led a US$500m investment round in X-energy, a company at the forefront of developing advanced SMRs and high-assay low-enriched uranium (HALEU) fuel.
The Climate Pledge Fund is a US$2bn corporate venture investment programme designed to accelerate the development and deployment of sustainable technologies and services that help Amazon, and other companies, achieve net zero.
The fund’s aim for Amazon and other companies is to produce zero carbon emissions by 2040, a decade ahead of the Paris Agreement target.
The investment supports X-energy’s design, licensing and fuel fabrication efforts and is expected to help deliver more than 5 GW of new nuclear capacity by 2039.
Direct nuclear power for data centres
Amazon plans to directly power its data centres with electricity from nuclear plants.
This is already underway at the Susquehanna site, enabling a stable, emissions-free energy source for its rapidly growing computing demands, particularly in AI and cloud services.
“At Amazon, our culture is rooted in innovation and speed,” says Kara Hurst, Amazon’s CSO.
“AI can enable both and we’re using it in ways big and small to make progress.
“This is just the beginning and I’m excited about all the ways AI can help us reach our goals.”
Enabling new nuclear projects
Amazon is actively facilitating new SMR deployments.
In Washington, it has signed an agreement with Energy Northwest to develop four reactors at the Columbia Generating Station, with an initial output of 320 MW.
In Virginia, Amazon is exploring a 300 MW SMR project with Dominion Energy at the North Anna site, with vendor selection due in 2025.
Creating jobs and stimulating economies
Each of Amazon’s nuclear-linked projects promises substantial economic uplift.
The SMR development in Washington is expected to generate up to 1,000 construction jobs and more than 100 permanent roles.
The Pennsylvania data centre project will create additional construction employment and modernise local infrastructure.
“Our agreement with Amazon is designed to provide us with a long-term, steady source of revenue and greater balance sheet flexibility through contracted revenues,” comments Mac McFarland, President and CEO at Talen.
“We remain a first mover in this space and intend to continue to execute on our data centre strategy. Talen is well-positioned to support Amazon’s energy needs as it invests further in the Commonwealth of Pennsylvania.”
Strengthening energy security and AI
Amazon’s nuclear ventures are not just about decarbonisation, they’re also about securing America’s position in global tech and energy leadership.
By enabling more than 5 GW of new nuclear energy, the company is laying the foundation for energy independence, grid stability and the continuous operation of AI-driven systems that require vast, uninterrupted power.
“We’re proud to be expanding our world-class data centre infrastructure, bringing more renewable energy projects online and supporting the country’s vision to be a global AI leader,” says Matt Garman, CEO of Amazon Web Services (AWS).
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