AWS Invests Over $500 Million in Nuclear Power to Fuel Data Centers and AI Growth

Amazon Web Services (AWS) is making a bold move into the nuclear energy sector with plans to invest over $500 million across three new projects in Virginia and Washington state. As AWS expands its cloud computing services and its focus on generative AI, the demand for clean, reliable energy is becoming paramount. Nuclear power, with its carbon-free output, is a key part of Amazon’s broader goal of achieving net-zero carbon emissions.
On Tuesday, AWS announced a partnership with Dominion Energy, Virginia’s leading utility company, to explore the development of a small modular nuclear reactor (SMR) near the existing North Anna nuclear power station. SMRs are a new breed of advanced nuclear reactors designed with smaller footprints and faster construction times, allowing them to be built closer to the grid. These reactors provide a consistent source of clean energy, a critical factor as the demand for power in data centers soars.
Matthew Garman, CEO of AWS, explained the company's growing need for energy: “We see the need for gigawatts of power in the coming years, and there’s not going to be enough wind and solar projects to meet the needs. Nuclear is a great opportunity, and the technology has advanced to a place where SMRs offer safe, scalable solutions.”

The Virginia Data Center Hub and Nuclear Innovation
Virginia, home to nearly half of the data centers in the United States, is a strategic location for AWS’s nuclear power initiatives. One of the most concentrated areas for data centers in the country is Northern Virginia, nicknamed "Data Center Alley," where an estimated 70% of the world’s internet traffic passes through daily.
Dominion Energy, which serves 3,500 megawatts from 452 data centers in the region, anticipates that power demand will increase by 85% over the next 15 years. AWS’s new SMR project is expected to add at least 300 megawatts of power to the grid, helping meet this surging demand.
Virginia Governor Glenn Youngkin hailed the announcement, stating, “Small modular nuclear reactors will play a critical role in positioning Virginia as a leading nuclear innovation hub. Amazon Web Services’ commitment to this technology is a significant step forward in meeting the future power needs of a growing Virginia.”
AWS’s investment aligns with the company's broader strategy to spend $35 billion by 2040 in building data center campuses across the state, further strengthening Virginia’s role as a tech and energy hub.

Expanding into Washington State
In addition to the Virginia project, AWS has announced a collaboration with Energy Northwest, a consortium of public utilities in Washington state, to develop and construct four SMRs. These reactors, powered by technology from Maryland-based X-energy, will feed directly into the regional power grid, providing energy for AWS’s operations and other utilities in the Northwest.
Amazon will have exclusive rights to purchase electricity from these first four modules, with Energy Northwest retaining the option to build up to eight additional modules. This initiative will help power Amazon’s growing operations while also supporting clean energy goals in the region.
AWS’s investment also extends to X-energy itself, as the company leads a $500 million financing round through its Climate Pledge Fund, a corporate venture capital initiative aimed at investing in sustainability startups. X-energy CEO J. Clay Sell commented on the partnership, saying, “Amazon and X-energy are poised to define the future of advanced nuclear energy in the commercial marketplace.”

The Role of Nuclear Energy in AWS's Climate Pledge
AWS’s nuclear projects are part of Amazon’s broader Climate Pledge, which aims to make the company carbon-neutral by 2040. In addition to its investments in nuclear, AWS has pursued other clean energy solutions, including wind, solar, and hydropower.
Nuclear energy, however, is gaining traction among tech companies due to its ability to generate large amounts of energy without carbon emissions. AWS is not the only major player making this move. Earlier this week, Google announced it would purchase power from SMR developer Kairos Power, and Constellation Energy is restarting the iconic Three Mile Island nuclear plant to support Microsoft’s data centers.
The Biden administration is also pushing for nuclear expansion, with Energy Secretary Jennifer Granholm announcing $900 million in new funding for SMR deployment as part of AWS's announcement. "We want these data centers to be built in the United States for a variety of reasons, including national security," Granholm said. "And we want that power to be clean power."

AWS’s Growing Nuclear Portfolio
This is not AWS’s first foray into nuclear energy. Last spring, the company signed an agreement with Talen Energy to purchase nuclear power from the Susquehanna Steam Electric Station in Pennsylvania. AWS also acquired Talen’s adjacent nuclear-powered data center campus for $650 million, further consolidating its nuclear energy assets.
As the demand for energy grows—driven by data center expansions and the increasing power requirements of AI technologies—AWS’s investments in nuclear power represent a forward-thinking strategy to ensure both sustainability and scalability. With advanced nuclear technology like SMRs, AWS aims to meet the world’s growing data needs while contributing to the global transition to clean energy.
By leveraging nuclear power, AWS is positioning itself as a leader not just in cloud computing, but also in sustainable innovation. As SMR technology matures, Amazon’s bet on nuclear could set a precedent for the tech industry and beyond, helping to pave the way for a cleaner, more energy-efficient future.