Amazon has taken a surprising step into the world of nuclear energy by investing heavily in advanced power solutions. This bold move gives Amazon first access to nuclear energy in Washington State and opens the door to a future where it could play a significant role in the energy sector.
Amazon’s Surprising Move Into Nuclear Power
When you think of Amazon, you likely imagine its e-commerce empire or its cloud computing giant, Amazon Web Services (AWS). AWS alone generates $90 billion annually, outperforming Microsoft’s Azure and Google Cloud. But nuclear power? That’s not something most people associate with the tech giant. However, with Amazon Price reflecting its growing influence across various industries, the company’s recent actions in the nuclear energy sector may change that.
Nuclear energy is becoming a popular choice for powering data centers. For example, Microsoft is working with Constellation Energy to revive the Three Mile Island facility, and Google has partnered with Kairos Power to develop nuclear plants for its operations. Amazon has decided to join this trend with a significant investment in a nuclear project led by Energy Northwest.
What’s the Project About?
Energy Northwest plans to build small modular reactors (SMRs) in Hanford, Washington. These reactors are designed to be more efficient and scalable than traditional nuclear plants. Initially, four SMRs will produce 320 megawatts of energy, with plans to scale up to 12 reactors generating 960 megawatts—enough to power a small city.
Amazon is contributing $334 million to fund the initial feasibility study for this project. This investment secures Amazon “first access” to the energy produced, which will be used to power its massive data centers in the Pacific Northwest. To give some perspective, one AWS data center can consume up to 960 megawatts annually—the same amount this project could eventually generate.
Why Is Amazon Interested in Nuclear Energy?
There are two main reasons behind Amazon’s interest.
- Energy Security for Data Centers
Amazon’s data centers require enormous amounts of power to run efficiently. Nuclear energy offers a reliable, clean, and long-term energy solution. By securing priority access to this power, Amazon ensures that its cloud computing operations in the region remain sustainable and efficient. - Becoming a Leader in Nuclear Energy
Amazon’s involvement in the Washington project is just the beginning. The reactors for this project are being manufactured by X-energy, a private company specializing in SMR technology. Amazon has also invested $500 million in X-energy, aiming to develop five gigawatts of SMR capacity across the U.S. by 2039. To put that into perspective, five gigawatts could power millions of homes or several large industrial operations.
Amazon’s Role in X-energy
Amazon is described as the “anchor investor” in X-energy, meaning it contributed the largest share of the $500 million funding. This likely gives Amazon a significant ownership stake in the company. X-energy was previously valued at $1.05 billion, but Amazon’s investment could now make it one of the largest, if not the majority, shareholders.
This strategic move not only strengthens Amazon’s access to nuclear power but also positions it as a key player in the energy market. If successful, the partnership with X-energy could expand Amazon’s influence far beyond e-commerce and cloud computing.
What This Means for Amazon’s Future
For a company of Amazon’s size—valued at $2.4 trillion and generating $620 billion in revenue annually—this nuclear investment might seem small. It will take years to build and operationalize the Washington reactors, and even longer to achieve the ambitious five-gigawatt goal. However, the impact of this investment isn’t just about immediate financial returns.
Final Thoughts
Amazon’s investment in nuclear power is about more than just energy—it’s about shaping the future. By securing access to clean, reliable power and investing in next-generation technology, Amazon is positioning itself as a leader in both innovation and sustainability. While it may take years to see the full impact, this bold move shows that Amazon’s ambitions go far beyond e-commerce and cloud computing.
