Amazon’s Climate Pledge Fund will anchor a $500 million financing round for X-Energy. As part of its ongoing Climate Pledge, Amazon aims to achieve net-zero carbon emissions across its operations by 2040. Amazon’s endorsement of X-energy, and nuclear energy as a sustainable, scalable solution marks a pivotal moment in the global push for clean power, while setting the stage for how the world will power the AI revolution.
Amazon’s Nuclear Shift: Powering the Future of AI
Amazon’s recent pivot to nuclear energy represents a groundbreaking shift in how global tech companies tackle the energy demands of AI-driven operations. In its 2023 Sustainability Report, AWS clarified that nuclear energy is now central to its long-term strategy. This is a significant moment: a global player with a 31% market share in cloud services is now investing heavily in nuclear energy as the solution to its growing power needs.
This strategic move was highlighted when Amazon acquired Talen Energy’s Cumulus Data Center, a 1,600-acre site adjacent to the Susquehanna nuclear power plant in March this year. This acquisition wasn’t just about adding data centers—it’s about using nuclear energy to fuel the future of cloud computing and AI. With plans to build 15 data centers powered by nuclear power on this site, AWS’s investment redefines sustainable growth in the tech sector.
“Nuclear energy is a strong option that already has a proven track record of providing a constant source of reliable power for communities around the world. Nuclear energy is the most reliable, abundant, and stable energy source on the grid, and Amazon’s investment in nuclear power is part of our broader efforts to decarbonize the energy sector, and our business.” – Amazon Sustainability Report, 2023.
The Rise of SMR-Powered Data Centers
But Amazon isn’t alone in recognizing the potential of nuclear energy, specifically Small Modular Reactors (SMRs), to power operations. Oracle, for instance, is designing a data center powered by three small nuclear reactors. The appeal of SMRs lies in their ability to provide a consistent, reliable energy source that can scale with the rising demands of AI while maintaining a smaller footprint than traditional nuclear plants.
As AI models become more energy-intensive – a ChatGPT query needs nearly 10 times as much electricity to process as a Google search – the need for reliable, carbon-free power has never been greater. Data centers already consume 1-2% of power globally, and this figure could double by 2030 due to the growth of AI. SMRs provide a flexible solution, delivering the stable power crucial for 24/7 data center operations without relying on fossil fuels.
Google has partnered with Kairos Power to explore advanced nuclear energy as part of its commitment to carbon-free operations by 2030. The collaboration focuses on piloting Kairos’ low-power demonstration reactor, which uses fluoride salt as a coolant, offering a safe and efficient energy alternative. This partnership highlights Google’s pursuit of clean, reliable energy for its data centers, aligning with broader industry trends where tech giants like Amazon are also investing in nuclear solutions to meet rising energy demands.
X-energy and Dow’s Partnership: SMRs in Industrial Settings
X-energy’s partnership with Dow highlights the broad applications of SMRs to provide carbon free electricity, process heat, and other industrial uses. On May 11, 2023, Dow selected its UCC Seadrift Operations site in Texas for the project, which will feature four of X-energy’s Xe-100 high-temperature gas-cooled reactors, providing 320 MWe of power on a 30-acre section of Dow’s 4,700-acre facility.
The reactors will supply safe, reliable, and low-carbon power and steam to support Dow’s manufacturing processes, aiming to reduce the site’s emissions by approximately 440,000 metric tons of CO2 per year. Construction is set to begin in 2026, with completion by the end of the decade, pending regulatory approvals. The project, backed by up to $50 million in engineering work funded equally by the U.S. Department of Energy’s Advanced Reactor Demonstration Program and Dow, positions X-energy at the forefront of clean energy in industrial applications.
Amazon’s Endorsement of X-energy Marks a Global Shift
By adopting and investing in nuclear energy, Amazon is setting a precedent for other tech giants. Its $100 billion investment in new data centers over the next decade will not only strengthen its cloud and AI infrastructure but also redefine its sustainability needs.
Amazon’s investment in X-energy highlights that nuclear energy is becoming an essential solution in the global effort to meet rising energy demands and achieve net-zero emissions. Its reliability, scalability, and carbon-free nature make it a critical component in decarbonizing multiple sectors, as the world moves toward a more sustainable future.